For the fourth quarter of 2009, Landstar System, Jacksonville, Fla., posted decreases in net income and revenue from the year-ago quarter, due to increased insurance and claims expenses in the quarter.
The non-asset based supply chain provider said it raked in $18.6 million, or 37 cents a share, in income during the 2009 quarter. Meanwhile, the 2008 quarter saw income of $24.6 million, or 47 cents a share.
Revenue for the fourth quarter was down to $547.7 million from revenue of $603.8 million in the year-ago period.
Despite the declines, Henry Gerkens, Landstar's chairman, president and CEO, had a positive outlook.
"Although the cost of insurance and claims in the quarter was much higher than a typical quarter, our 2009 accident frequency rate was the lowest in Landstar history, demonstrating the Company's continued emphasis on safety," he said. "Operating margin was 5.0 percent in the 2009 fourth quarter compared to 6.8 percent in the 2008 fourth quarter, primarily as a result of the adverse development of commercial trucking claims."
"As we moved through the 2009 fourth quarter, both the number of loads and rate per load continued to show signs of strengthening," he said. "Through the first several weeks of January, I have seen daily volume increases of approximately five to ten percent compared to January 2009, while rate per load continues to show improvement. Assuming these trends continue for the balance of the quarter, I would anticipate 2010 first quarter revenue to increase over the 2009 first quarter revenue in a mid to upper single digit range."
The non-asset based supply chain provider said it raked in $18.6 million, or 37 cents a share, in income during the 2009 quarter. Meanwhile, the 2008 quarter saw income of $24.6 million, or 47 cents a share.
Revenue for the fourth quarter was down to $547.7 million from revenue of $603.8 million in the year-ago period.
Despite the declines, Henry Gerkens, Landstar's chairman, president and CEO, had a positive outlook.
"Although the cost of insurance and claims in the quarter was much higher than a typical quarter, our 2009 accident frequency rate was the lowest in Landstar history, demonstrating the Company's continued emphasis on safety," he said. "Operating margin was 5.0 percent in the 2009 fourth quarter compared to 6.8 percent in the 2008 fourth quarter, primarily as a result of the adverse development of commercial trucking claims."
"As we moved through the 2009 fourth quarter, both the number of loads and rate per load continued to show signs of strengthening," he said. "Through the first several weeks of January, I have seen daily volume increases of approximately five to ten percent compared to January 2009, while rate per load continues to show improvement. Assuming these trends continue for the balance of the quarter, I would anticipate 2010 first quarter revenue to increase over the 2009 first quarter revenue in a mid to upper single digit range."
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