Landstar 3rd-quarter earnings jump 12 percent

Looking ahead, Landstar said freight demand fell off in the latter part of the third quarter and is not expected to improve in the fourth.

The Associated Press

10/16/2008

JACKSONVILLE, Fla. — Landstar System Inc., which provides logistics services, said Wednesday third-quarter earnings rose 12 percent as revenue grew in most of its business areas.

Net income climbed to $32.8 million, or 62 cents per share, from $29.3 million, or 54 cents per share, a year ago.

Revenue rose 15 percent to $732.6 million from $634.8 million last year.

Analysts expected a more modest profit of 59 cents per share, on revenue of $704.2 million, according to Thomson Reuters.

Looking ahead, the company said freight demand fell off in the latter part of the third quarter and is not expected to improve in the fourth. The company expects higher revenue compared with the year-ago fourth quarter, but said earnings will be “similar” to last year.

In the year-ago quarter, the company earned 54 cents per share on revenue of $644.1 million. Wall Street analysts anticipate higher fourth-quarter profit of 59 cents per share with revenue of $717.3 million.

Landstar shares fell Wednesday $3.28, or 8.3 percent, to close at $36.12.