Landstar reports higher 1Q net income

user-gravatar

Landstar

Landstar System on Wednesday, April 14, reported a 17 percent increase in revenue to $548.1 million in the 2010 first quarter, up from $469.2 million in the 2009 first quarter. Net income was $17.2 million compared to $13.9 million.

Revenue hauled by third-party truck capacity providers was $505.9 million, or 92 percent of revenue, compared to $426.3 million, or 91 percent of revenue; included in revenue hauled by third-party truck capacity providers in the 2010 and 2009 first quarters were $19.0 million and $9.8 million, respectively, of fuel surcharges invoiced to customers on revenue hauled by third-party truck brokerage carriers.

In the 2010 and 2009 first quarters, the company also invoiced customers $41.3 million and $24.2 million, respectively, of fuel surcharges that were passed 100 percent to third-party BCO Independent Contractors and excluded from revenue. Revenue hauled by rail, air and ocean cargo carriers was $28.5 million, or 5 percent of revenue, compared to $33.6 million, or 7 percent of revenue. Transportation management fee revenue was $5.1 million, or 1 percent of revenue.

“I am very pleased with the Company’s start to 2010,” said Henry Gerkens, chairman, president and chief executive officer of Landstar, based in Jacksonville, Fla. “This marked the first time since the 2008 third quarter where revenue in the current quarter increased over the corresponding prior-year quarter.”

The increased revenue was primarily the result of an 18 percent increase in the number of loads hauled, which was offset partly by a lower revenue-per-load amount of about 2 percent compared to the 2009 first quarter. The number of loads hauled by third-party truck capacity providers in March 2010 was the highest number of loads hauled by third-party truck capacity providers in March of any year in Landstar’s history, Gerkens said. Also in March 2010, the company experienced the first month-over-prior-year-month increase in revenue per load on freight hauled by third-party truck capacity providers since 2008.

“The freight environment continues to improve,” Gerkens said. “Recent trends in March, and thus far in April, indicate that both the revenue per load and the number of loads hauled remain strong compared to the corresponding prior-year periods. I expect these trends to continue throughout the 2010 second quarter.”