Landstar System today, Oct. 19, said third-quarter earnings fell 12 percent, due mostly to less income from a hurricane-related contract with the federal government. Quarterly earnings were $30.6 million, down from $34.6 million during the same period last year. Revenue shrank 4 percent to $649.2 million from $676.1 million during the same period a year ago. The company said income from a hurricane-related contract between its logistics group and the Federal Aviation Administration contributed $2.8 million; last year, the contract provided a benefit of $14 million.
Landstar said revenue from its carrier group rose 11 percent to $461 million from $414 million a year ago, which bucked an industry trend towards lower trucking revenue from weaker freight demand and capacity constraints; in fact, the company said it grew its total number of approved truck capacity providers by more than 700.
“Landstar has delivered another quarter of strong growth in our core business, as consolidated revenue exclusive of revenue generated under Landstar Express America’s contract with the FAA increased 13.4 percent,” said Henry Gerkens, president and chief executive officer of the Jacksonville, Fla.-based company. “Operating margin, exclusive of the effect of revenue generated under the FAA contract, increased 123 basis points to 7.6 percent.”
