Landstar System today, April 19, reported a fall in first-quarter earnings, as overall revenue declined due to the lower revenue derived under a Federal Aviation Administration contract and the continuation of softer demand in the domestic freight transportation industry.
The Jacksonville, Fla.-based company posted for the quarter net income of $21.60 million, down from its year-ago net income of $24.35 million. The results included a charge of $5.0 million, net of related income tax benefits, which reduced first-quarter income by $3.1 million. The nonasset-based company said its quarterly revenues decreased to $576.65 million from $610.04 million reported in the same period last year.
Fiscal 2007 first quarter had $3.4 million of revenue attributable to transportation services provided primarily under a contract between Landstar Express America and the U.S. Department of Transportation/FAA. The year-ago quarter’s revenue included $35.4 million related to transportation services provided primarily under the FAA contract.
Landstar said its operating margin for quarter was 6.4 percent; the revenue generated under the FAA contract increased operating margin by 14 basis points in the 2007 period. The company stated that during the quarter, it purchased 555,952 shares of its common stock at a total cost of $23.5 million; the company may purchase an additional 271,549 shares under its previously authorized share purchase program.