Landstar System Inc. reported a 24% increase in revenue to a record $482 million in the 2004 second quarter, up from $390 million in the 2003 second quarter.

Net income for the 2004 second quarter was a record $17.6 million compared to net income of $13.6 million for the 2003 second quarter. Operating margin was 6.1% in the 2004 second quarter, up from 5.8% in the 2003 second quarter.
Landstar's carrier group of companies generated $364 million of revenue in the 2004 second quarter, compared with revenue of $303 million in the 2003 second quarter. In the 2004 and 2003 second quarters, the carrier group invoiced customers $13.7 million and $10.0 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 $111 million of revenue in the 2004 second quarter compared with $80 million of revenue in the 2003 second quarter.
Net income for the 26-week period ended June 26, 2004 was $25.7 million, which included $7.6 million of costs to settle one, previously disclosed, severe accident. This charge, net of related income tax benefits, reduced net income by $4.9 million.
Net income for the 26-week period ended June 28, 2003 was $23.7 million. Revenue was $903 million in the 2004 first half, compared to revenue of $756 million in the 2003 first half. Landstar's carrier group of companies generated $685 million of revenue in the 26-week period ended June 26, 2004 compared with $593 million in the 26-week period ended June 28, 2003.
"I am extremely pleased with Landstar's 2004 second quarter performance," said Landstar President and CEO Henry Gerkens. "Consolidated revenue increased by 24% to the highest quarterly revenue in Landstar history, as revenue at the carrier segment increased 20% and revenue at the multimodal segment increased 39%.
"I anticipate revenue growth for the second half of the 2004 fiscal year to be within a range of 12 to 16%."