Landstar's Earnings Drop in 2nd Quarter

Landstar System on July 15 reported lower second-quarter earnings, as the Jacksonville, Fla.-based trucking company continued to feel the impact of the economic recession.

Landstar's earnings fell 40 percent to $17.9 million, with revenue down 30 percent to $491.2 million. The earnings were lowered this year by $2 million, because of costs associated with the acquisitions of two supply chain transportation integration companies.

The number of loads hauled in the second quarter decreased 16 percent compared to the same quarter in 2008, but was better than the 17 percent decline experienced in the first quarter of this year.

“However, this improvement was more than offset by continued pressure on price which was caused in part by lower fuel surcharge revenue on freight hauled by third-party truck brokerage carriers and rail, ocean and air cargo carriers,” an announcement by Landstar said.

Although he said the worst is over, Landstar CEO Henry Gerkens said there is still uncertainty in the market, and the company will not make any earnings predictions.

Contact Marcy Behrmann Frank at mfrank@joc.com.