Landstar System on Thursday lowered its growth expectations for the third quarter to a mid-single-digit range, a potential sign of a slowing truck market.
Landstar CEO, President and Chairman Henry Gerkens said the last eight weeks have fallen short of expectations of 7 to 10 percent year-over-year revenue growth in the third quarter. He said the stretch, which is traditionally the company's strongest period of the quarter, “can best be described as very choppy.”
“As I said before, daily load volume trends have been somewhat inconsistent in the 2012 third quarter, increasing 10 percent one day and flat the next day when compared to the prior year,” Gerkens said during an investors conference call, according to a SeekingAlpha transcript.
He said overall business gained from each truckload “remains relatively high,” but revenue per load is tracking at about the same rate as in third quarter 2011, partly because of a tough comparison. Although the company will gains some extra business providing relief services to those hit by Hurricane Isaac, Gerkens doesn’t expect the bump in business to have a sizable impact on the third quarter results.
"Additionally, our air and ocean revenue is running well below anticipated levels in the 2012 third quarter from a combination of lower volume and price," Gerkens said.