Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Landstar Profit Sinks 20%, Falls Short of Expectations

Asset-light trucking and related services provider Landstar System reported a 20% second quarter decline in earnings due to lower revenue and a big insurance claim.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
July 20, 2016
Landstar Profit Sinks 20%, Falls Short of Expectations

 

3 min to read


Asset-light trucking and related services provider Landstar System Inc. (NASDAQ: LSTR) reported a 20% second quarter decline in earnings due to lower revenue and a big insurance claim.

The Florida company reported net income of $32.3 million, or 76 cents per share, down from $40.5 million a year earlier, or 92 cents per share. The earnings per share was less than a consensus estimate of 82 cents from analysts and below updated guidance issued by Landstar in early June. Back in April it was expecting second-quarter earnings of 80 cents to 85 cents per share.

Ad Loading...

“Net income was negatively impacted by elevated insurance and claims costs, driven mostly by the severity of claims ... the highest quarterly insurance and claims cost over the past six years,” the company said in a statement. It did not elaborate about the claim

Total revenue during the second quarter fell to $775.2 million from $868.4 million, in line with the company’s June expectations. Truck transportation revenue hauled by independent contractor drivers and truck brokerage carriers during the quarter was $718.5 million, compared to $809.2 million in the 2015 second quarter.

Landstar’s truckload transportation revenue hauled by van was $458 million, down from $496.9 million a year earlier. During the same time, truckload transportation revenue hauled via unsided/platform equipment fell to $242 million from $291 million. Revenue from freight hauled by rail, air and ocean cargo carriers was $45.1 million, compared to $48.1 million, in the 2015 second quarter.

Ad Loading...

"Overall, from a revenue standpoint, I believe we executed well considering the sluggish freight environment," said Landstar President and CEO Jim Gattoni. He pointed out that comparisons to last year's second quarter are thrown off because of more than 13,000 truckloads on platform trailers hauled for a project for a single automotive customer that was resposible for $27 million in revenue last year. "Excluding the loadings related to that project, we experienced a slight increase in loads hauled via truck over the 2015 second quarter.”

He said Landstar's truckload services continued to experience significant pricing pressure throughout the 2016 second quarter, as industry-wide truck capacity was more readily available as compared to the 2015 second quarter and demand continued to be soft.

“Although we experienced a somewhat normal seasonal uptick in revenue per load from May to June, the pricing pressure continued in the U.S. spot market, in which the company operates much of its business,” Gattoni said. “Additionally, the average cost of a gallon of diesel fuel was approximately 20% lower during the 2016 second quarter compared to the 2015 second quarter, putting additional pressure on pricing, especially as it relates to loads hauled via truck brokerage carriers.”

The result: Revenue per load on freight hauled via truck was 9% lower in the 2016 second quarter compared to the 2015 second quarter.

Looking at the current third quarter of the year, Landstar said it is experiencing the normal seasonal uptick in revenue per load on loads hauled via truck and expects revenue for the period to be similar to second quarter revenue.

Ad Loading...

Landstar also announced on Wednesday that its board of directors has declared a quarterly dividend of 9 cents per share, 12.5% higher that it was in each of the previous four quarters.

More Fleet Management

Woman in white blazer superimposed on background showing a row of Fraley & Schilling truck, plus the HDT Truck Fleet Innovators 2026 logo
Fleet Managementby Deborah LockridgeAugust 19, 2026

For Nicky Cupp, Fleet Innovation Starts With Frustration

HDT Truck Fleet Innovator Nicky Cupp turns everyday pain points at Fraley & Schilling into opportunities for better technology and smarter processes.

Read More →
Headshot of Adam Buttgenbach with a Pepsi-branded Tesla Semi in the background
Fleet Managementby Deborah LockridgeAugust 18, 2026

Adam Buttgenbach’s Approach to Electric Trucks: Start With Where They Fit

HDT Truck Fleet Innovator Adam Buttgenbach helped PepsiCo build one of North America’s largest EV fleets by focusing on where electric trucks make operational sense.

Read More →
Deen Albert in collared shirt superimposed on background showing a Grand Island Express blue tractor pulling a trailer, plus the HDT Truck Fleet Innovators 2026 logo
Fleet Managementby Deborah LockridgeAugust 17, 2026

Deen Albert: Let Automation Do the Math, People Make the Decisions

HDT Truck Fleet Innovator Deen Albert makes sure people are still at the heart of operations at Grand Island Express, even while adopting artificial intelligence tools. AI-assisted dispatch helped boost revenue 25% with the same number of trucks.

Read More →
Ad Loading...
Illustration of computer screen with Trimble Arc Agent screen
Fleet Managementby Deborah LockridgeAugust 14, 2026

Trimble’s New AI Agent Takes Aim at Fleet Back-Office Busywork

Arc Agent works across Trimble TMS products to automate repetitive tasks such as freight orders, maintenance, invoices, fuel costs and more.

Read More →
Photos of three men and two women with HDT Truck Fleet Innovators 2026 logo
Fleet ManagementCover Storyby Deborah LockridgeAugust 13, 2026

How HDT’s 2026 Truck Fleet Innovators Are Rethinking Fleet Operations

Meet five trucking leaders who are challenging assumptions, solving operational problems, and putting innovative ideas to work.

Read More →
Graph showing how contract rates and spot rates converged in July
Fleet Managementby StaffAugust 12, 2026

Tight Trucking Capacity Pushes Rates Higher Even as Freight Volumes Fall

“Spot rates moving ahead of contract rates have historically signaled a tightening market, but we haven’t seen a capacity-driven market quite like this one,” said DAT's Dean Croke.

Read More →
Ad Loading...
Line graph showing container import volumes
Fleet Managementby StaffAugust 7, 2026

Import Cargo’s Early Peak Season is Winding Down

There was an early start to peak season this year at the nation's gateway ports, as retailers brought in merchandise ahead of tariff changes in late July and responded to other supply chain uncertainties,

Read More →
Blue infographic with graphs illustrating cargo theft trends in the second quarter of 2026
Fleet Managementby Deborah LockridgeAugust 6, 2026

Fewer Cargo Thefts, Bigger Losses: Criminals Target Higher-Value Loads

CargoNet says organized theft rings are stealing fewer shipments but choosing more valuable freight, including metals and technology, resulting in record losses.

Read More →
Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →
Ad Loading...
Illustration of past due invoices with red X on top with background of a truck at a loading dock
Fleet ManagementJuly 27, 2026

Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.

When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.

Read More →