Landstar System reported its profit in the second quarter of 2013 was $30.4 million, dropping 15.1 percent from $35.9 million in the second quarter of 2012.
Quarterly revenue for Landstar, No. 8 on JOC’s 2012 list of the Top 50 Trucking Companies, was $679.3 million, declining 7.7 percent from $736.0 million in the same period last year. Truck transportation revenue hauled by independent business capacity owners and truck brokerage carriers in the second quarter was $622.7 million, or 92 percent of revenue, and revenue hauled by rail, air and ocean cargo carriers was $42.6 million, or 6 percent of revenue.
“Consistent with the 2013 first quarter, the company experienced softness in both the number of loads and revenue per load on loads hauled via truck throughout the second quarter with much of the softness coming from revenue hauled on unsided/platform equipment,” said Henry Gerkens, Landstar’s chairman, president and CEO, in a written statement. “Despite the soft operating environment, Landstar's operating margin for the 2013 second quarter was a very solid 45.7 percent.”
“In addition, our 2013 second quarter operating margin was negatively impacted by increased insurance and claims expense and an approximate $2 million in costs for Landstar's Annual Agent Convention, which was held in the 2013 second quarter, as opposed to the first quarter of the prior year,” Gerkens continued. “The 2013 second quarter operating results, although not equal to the 2012 second quarter results, demonstrates the resiliency of our variable cost business model.”
“Based upon current revenue trends and considering the soft U.S. industrial production forecasts for the balance of the year, I would anticipate revenue for the 2013 third quarter to be in a range of $670 million to $715 million,” he concluded.
The Jacksonville, Fla.-based company’s net income in the first six months of 2013 was $57.2 million, down year-over-year from $62.7 million, and its revenue was $1.31 billion, sliding from $1.38 billion.