Landstar System Inc., Jacksonville, Fla., said its revenues rose 15% to a record $421 million in the 2004 first quarter from $366 million in the 2003 first quarter.

First quarter net income was $8.1 million, or $.26 per diluted share, which included a $7.6 million charge for the cost incurred to settle a previously disclosed accident. This charge, net of related income tax benefits, reduced 2004 first quarter net income by $4.9 million.
Net income for the 2003 first quarter was $10.2 million. Operating margin was 3.3% in the first quarter, which was reduced 1.8% by the accident, compared with 4.7% in the 2003 first quarter.
Landstar's carrier group of companies generated $322 million of revenue in the 2004 first quarter, compared with revenue of $290 million in the 2003 first quarter. In the 2004 and 2003 first quarters, the carrier group invoiced customers $8.3 million and $8.6 million, respectively, of fuel surcharges that were passed on 100% to business capacity owners and excluded from revenue. Landstar's multimodal services group of companies generated $92 million of revenue in the 2004 first quarter compared with $69 million of revenue in the 2003 first quarter.
"We are off to a great start," said Landstar Chairman and CEO Jeff Crowe. "Consolidated revenue increased by 15% to the highest first quarter revenue in Landstar history. This increase reflected strong growth at the carrier segment and a 34% increase in revenue at the multimodal segment. Compared to the 2003 first quarter, revenue generated through other third-party truck capacity providers (truck brokerage) increased 33%, revenue hauled by Landstar BCOs increased 11% and revenue generated through rail, air and ocean carriers increased 10%," Crowe said.