Landstar Profit Falls 41 Percent

Landstar System's net profit fell 41.4 percent and revenue declined 22.9 percent in the first quarter  as slack demand for truck capacity staggered the non-asset based trucking and brokerage company.

Landstar reported net income of $13.9 million on revenue of $469.2 million in the first quarter compared to net income of $23.7 million on revenue of $608.8 million in the 2008 first quarter.

Loads hauled by its network of independent contractors, which made up 56 percent of $262.1 million in revenue in the first quarter, fell 16 percent. Revenue per load fell 3.9 percent to $1,536. Loads hauled in its truck brokerage division fell 17.1 percent, with revenue per load falling 13.3 percent to $1,396.

“Although volume declines compared to the 2008 first quarter remained generally consistent with the year over year volume decline experienced during the last four weeks of December 2008, the increased pressure on price, along with lower fuel surcharge revenue on freight hauled by truck brokerage carriers, caused overall revenue to decline,” said Landstar President and CEO Henry Gerkens.