Landstar reports higher 4Q revenue, net income

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Landstar System Inc. on Thursday, Feb. 2, reported revenue of $717.5 million in the 14-week 2011 fourth quarter compared to $587.5 million in the 2010 13-week fourth quarter. The company also reported net income of $32.6 million compared to net income of $24.1 million. Operating margin was 45.0 percent compared to 36.4 percent.

Truck transportation revenue hauled by independent business capacity owners and truck brokerage carriers was $659.3 million, or 92 percent of revenue, compared to $537.6 million, or 91 percent of revenue. Revenue hauled by rail, air and ocean cargo carriers was $44.2 million, or 6 percent of revenue, compared to $36.7 million, or 6 percent of revenue. Transportation management fee revenue generated by the supply chain solutions companies was $5.1 million compared to $4.4 million.

“I am extremely pleased with Landstar’s 2011 fourth- quarter and full- year performance,” said Henry Gerkens, chairman, president and chief executive officer of the Jacksonville, Fla.-based company. “Revenue in the 2011 fourth quarter increased 22 percent over the 2010 fourth quarter. I estimate that the extra week in the 2011 fourth quarter contributed approximately $25 to $30 million in additional revenue.” Gerkens said revenue growth was driven by continued strength in revenue per load and a significant increase in volumes over the prior-year fourth quarter.

Landstar completed fiscal year 2011 with record annual revenue of $2,649.1 million compared to $2,400.2 million for the 2010 fiscal year. Operating margin was 42.4 percent for the 2011 fiscal year compared to 35.5 percent for the 2010 fiscal year. “I expect that strength to continue into 2012,” Gerkens said.