Florida-based Landstar System Inc. reported net income for the 13-week period ended March 31, 2007, of $21.6 million, or $0.38 per diluted share, which included a $5 million charge for the estimated cost of an accident
that occurred during the first quarter of 2007.
This charge, net of related income tax benefits, reduced 2007 first quarter net income by $3.1 million, or $0.05 per diluted share. Revenue for the first quarter of 2007 was $577 million, which included $3.4 million of revenue attributable to transportation services provided primarily under a contract between Landstar and the FAA.
Net income for the period ended April 1, 2006 was $24.4 million, or $0.41 per diluted share, on revenue of $610 million. Included in the 2006 first quarter was $35.4 million of revenue related to disaster relief efforts for the various hurricanes that impacted the United States during the second half of 2005.
Landstar's carrier group of companies generated $424 million of revenue in the period ended March 31, 2007, compared with revenue of $428 million in the period ended April 1, 2006. In the 2007 and 2006 first quarters, the carrier group invoiced customers $33.7 million and $33.8 million, respectively, in fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue.
Commenting on Landstar's 2007 first quarter performance, Landstar President and CEO Henry Gerkens said, "Excluding the estimated impact of the severe accident in the 2007 first quarter, Landstar delivered earnings per diluted share of $0.43, which was at the upper end of our original estimated range of earnings. As anticipated, revenue for the quarter was slightly lower than the prior year quarter due to the lower revenue derived under the FAA contract and the continuation of softer demand in the domestic freight transportation industry. Once again however, our non-asset based variable cost business model achieved high financial returns as it adapted to the slower 2007 first quarter economy."