Landstar System, Jacksonville, Fla., saw declines in both net income and revenue during the second quarter, on the heels of a 16 percent loss of loads hauled, low fuel surcharge revenue and continued price pressure.
However, the company believes the worst is over.

The company's second quarter net income was $17.9 million, down from $29.8 million in the same quarter of last year, a 16.6 percent decline. Revenue landed at $491.2 million from $697.7 million in the second quarter of 2008, a decrease of about 14 percent.

The company's revenue for the first half of 2009 came out to be $960 million, compared to $1.306 billion for the 2008 period. Net income for the first six months was $31.8 million, versus $53.5 million for 2008.

"In the 2009 second quarter, Landstar's revenue continued to be negatively impacted by the severe recession in the domestic and global economies," said Henry Gerkens, Landstar president and CEO. "As was the case in the 2009 first quarter, revenue declines were experienced in just about every sector, including revenue generated from the U.S. Department of Defense."

The second quarter results include $2 million in costs related to the company's recent acquisitions of Premier Logistics and A3 Intregation, supply chain transportation integration companies.

Revenue hauled by Landstar's independent contractors in the second quarter was $288.6 million, or 59 percent of revenue, compared to $375.4 million, or 54 percent of revenue, in the 2008 second quarter. In the second quarters of 2009 and 2008, the company invoiced customers $27.3 million and $90.3 million, respectively, in fuel surcharges that were passed on 100 percent to independent contractors and excluded from revenue.

Revenue hauled by third-party truck brokerage carriers was $165.2 million, or 34 percent of revenue, in the 2009 second quarter, compared to $261.7 million, or 38 percent of revenue, in the 2008 second quarter.

Meanwhile, the company's quarterly dividend did grow, with a 13 percent increase to 4.5 cents a share.

"I do not foresee a significant change in the current freight environment as we move through the third quarter," Gerkens said. "However, there has been a slight improvement in volume trends. In addition, some of the very difficult revenue comparisons experienced during the first half of 2009 begin to ease toward the end of the 2009 third quarter and into the 2009 fourth quarter. I believe the worst is over."