Landstar Reports Record Profit, Revenue; Forecasts Higher Numbers

Freight transportation provider Landstar System has reported record high third quarter net income of $36.8 million, or 82 cents per diluted share, on  revenue of $819 million.

Revenue and diluted earnings per share during the period were also the highest in company history.

This compares to net income from continuing operations of $28.5 million, or 62 cents per diluted share, on revenue of $676 million in the 2013 third quarter.

Truck transportation revenue hauled by owner-operator drivers and truck brokerage carriers in the 2014 third quarter was $767.5 million, or 94% of revenue, compared to $627.5 million, or 93% of revenue, in the 2013 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $41.7 million, or 5% of revenue, compared to $38.8 million, or 6% of revenue, a year earlier.

“Overall, demand for Landstar's truck transportation services in the 2014 third quarter continued to be very strong, as the number of loads hauled via truck increased 11% over the 2013 third quarter. Revenue per load hauled via truck also remained very strong and increased 10% over the 2013 third quarter,” said Landstar Chairman and CEO Henry Gerkens. “In fact, Landstar's average revenue per load hauled via truck in the 2014 third quarter was the highest quarterly average revenue per load in the company's history."

Landstar said it experienced very strong revenue growth over the 2013 third quarter with both loads hauled with van equipment and loads moved on flatbed equipment. On a year over-year quarterly basis, revenue hauled with vans increased 24% and revenue hauled on flatbeds increased 20%.

"The strength in both the number of loads hauled via truck and truck revenue per load experienced in the 2014 third quarter has so far continued through the first several weeks of October,” Gerkins said. “Currently, I would also anticipate that the strength in both load volume and revenue per load from truck transportation services should continue throughout the remainder of the 2014 fourth quarter.”

Landstar also forecast estimated consolidated revenue for the 2014 fourth quarter will range from $800 million to $840 million, with diluted earnings per share from continuing operations to be in a range of 77 cents to 82 cents per share, compared to 55 cents per diluted share from continuing operations in the 2013 fourth quarter.

“For the year, I expect consolidated revenue to exceed $3 billion for the first time in the company's history,” Gerkinsa said. “In addition, I anticipate that gross profit, operating income and diluted earnings per share in 2014 will also achieve full year company records."

More detals are on the Landstar website.