Landstar System Inc., Jacksonville, Fla., reported a 28 percent increase in revenue to a record $676 million in the 2005 third quarter, up from $527 million in the 2004 third quarter.

Net income for the 2005 third quarter was a record $35.6 million, or $.60 per diluted share, compared to net income of $21.6 million, or $.35 per diluted share, for the 2004 third quarter. Operating margin in the 2005 third quarter was 8.7 percent compared with 6.8 percent in the 2004 third quarter.
Included in the 2005 third quarter revenue was $129.8 million of revenue related to disaster relief efforts for the various hurricanes that impacted the United States during the quarter. These emergency transportation services were provided primarily under a contract between Landstar and the United States Department of Transportation/Federal Aviation Administration. The revenue recognized under this contract during the 2005 third quarter generated $22.7 million of operating income which, net of related income taxes, increased net income by $14.0 million, or $.23 per diluted share.
"I am very pleased with Landstar's 2005 third quarter performance," said Landstar President and CEO Henry Gerkens. "Consolidated revenue increased by 28 percent, compared to the 2004 third quarter, to the highest quarterly revenue in Landstar history. Revenue at the carrier segment increased 12 percent and revenue at the global logistics segment increased 69 percent. Landstar was not only able to source the necessary capacity required for the disaster relief efforts but was also able to source sufficient capacity to support a 9.5 percent increase in revenue, excluding the revenue from hurricane relief efforts in both periods. Landstar provided $129.8 million of transportation services in support of disaster relief efforts during the 2005 third quarter, including $24.5 million related to buses and $15.7 million for air transportation services. In addition, earnings per diluted share increased 71 percent over the 2004 third quarter."