Landstar Reports Record 2Q Earnings
July 30, 2012
Landstar System reported record second quarter revenue and earnings per share.
The non-asset-based carrier reported diluted earnings per share of $0.76 from net income of $35.9 million, compared to net income of $29.6 million, or $0.62 per diluted share, for the 2011 second quarter.
Operating margin, representing operating income divided by gross profit (gross profit defined as revenue less the cost of purchased transportation and commissions to agents) was 50.4% in the 2012 second quarter compared to 43.6% in the 2011 second quarter. Revenue for the 2012 second quarter was a second-quarter record of $736.0 million compared to $675.6 million in the 2011 second quarter.
Truck transportation revenue hauled by independent business capacity owners ("BCOs") and truck brokerage carriers in the 2012 second quarter was $680 million, or 92% of revenue, compared to $621.5 million, or 92% of revenue, in the 2011 second quarter.
In the 2012 and 2011 second quarters, the company invoiced customers $79.3 million and $78.7 million, respectively, of fuel surcharges that were passed 100 percent to BCOs and excluded from revenue.
Included in revenue hauled by third-party truck capacity providers in the 2012 and 2011 second quarters were $30.1 million and $25.9 million, respectively, of fuel surcharges invoiced to customers on revenue hauled by third-party truck brokerage carriers.
Revenue hauled by rail, air and ocean cargo carriers was $41.3 million, or 6% of revenue, in the 2012 second quarter compared to $39.9 million, or 6% of revenue, in the 2011 second quarter.
"Landstar's 2012 second quarter performance was the best second quarter operating performance in Landstar history," said Landstar Chairman, President and CEO Henry Gerkens.
The number of loads hauled on truck capacity in the 2012 second quarter increased 8% over the 2011 second quarter.
"As anticipated, the increase in pricing on truck transportation on a quarter over prior year quarter basis has moderated to some degree, but still remained high in relation to historical amounts."
Available truck capacity in the flatbed/unsided trailing equipment market continued to lag demand, Gerkens said, and available truck capacity in the van arena was in-line with demand.