Landstar System says truckload freight volumes are increasing and revenue rising about 10 percent in the second quarter despite a sometimes “choppy” economy.
Volume growth underlies about 70 percent of that revenue increase, Henry H. Gerkens, Landstar chairman, president and CEO, said in a May 29 conference call.
That’s a signal there’s plenty of freight to move, despite reports of weakening consumer confidence, as industrial production increases.
Industrial production rose 1.1 percent in April, after falling 0.6 percent in March, and was 5.2 percent above its year-ago level, according to the Federal Reserve.
Landstar had what Gerkens earlier called the best first quarter in its history, increasing total revenue 13.5 percent and net profit 30 percent from a year ago.
Gerkens said he was “very confident” the $2.7 billion non-asset carrier would meet its second quarter earnings projection of 71 to 76 cents per diluted share.
He stressed Landstar has the capacity to build on its gains. A first quarter decline in owner-operators was offset in the first eight weeks of this quarter, he said.
At the end of the first quarter, the carrier's business capacity owners, or owner-operators, fielded 8,350 tractors, compared with 8,226 units a year ago.