Landstar reports higher 1Q net income

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Landstar System on Thursday, April 21, reported 2011 first-quarter net income of $20.6 million compared to net income of $17.2 million for the 2010 first quarter. Operating margin was 35.4 percent compared to 31.3 percent. Revenue was $572.0 million compared to $548.1 million.

“I am very pleased with the company’s 2011 first quarter performance,” said Henry Gerkens, chairman, president and chief executive officer of Jacksonville, Fla.-based Landstar. “Despite the anticipated revenue decline in our substitute line-haul service offering and the adverse effects of some inclement weather in the 2011 first quarter, revenue increased four percent over the 2010 first quarter.”

Gerkens said in the 2011 first quarter, overall truckload capacity was seasonally tighter than experienced during prior-year first quarters, which led to improved pricing. “So far, in April, truckload pricing has continued to increase from the 2011 first quarter,” he said. “I anticipate that trend to continue throughout the second quarter as freight demand increases over the 2011 first quarter. Assuming those operating trends continue throughout the quarter, I would expect operating margin in the 2011 second quarter to be about 42 percent.”