Landstar reports record 3Q revenue, higher net income

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Landstar System on Wednesday, Oct. 15, reported record third-quarter revenue of $733 million compared to $635 million in the 2007 third quarter. Net income was $32.8 million compared to $29.3 million in the year-ago period.

Revenue in the 39-week period ended Sept. 27 increased about 11 percent to $2.039 billion compared to $1.844 billion in the 2007 39-week period. Net income was $86.3 million compared to $80.6 million for the 2007 39-week period.

Revenue and net income in the 2008 13- and 39-week periods included $27.6 million and $1.7 million, respectively, for bus capacity provided in connection with evacuation assistance related to the storms that impacted the Gulf Coast recently.

“Landstar’s 2008 third-quarter performance was remarkable,” said Henry Gerkens, president and chief executive officer of the Jacksonville, Fla.-based company. “Landstar delivered a 15 percent increase in revenue over the 2007 third quarter and experienced strong revenue increases across multiple service offerings. Excluding the revenue from bus evacuation services, revenue increased 11 percent quarter over quarter.”

Gerkens said that notwithstanding Landstar’s third-quarter results, the company experienced reduced freight demand during the latter part of the 2008 third quarter. “This trend has continued into early October, and based upon the current uncertain economic outlook, I don’t foresee that trend reversing in the 2008 fourth quarter,” he said. “I do anticipate increased revenue in the 2008 fourth quarter when compared to the 2007 fourth quarter. However, that rate of growth will not be at the level experienced in the first nine months of 2008 versus the first nine months of the prior year.”