Landstar 2Q profit up 21% on more hauling, higher prices
The Jacksonville, Fla., company said its trucks carried 8 percent more loads than a year ago and it raised truck pricing, although more slowly than in the past.
The Associated Press
JACKSONVILLE, Fla. — Trucking operator Landstar System Inc. said Thursday that second-quarter net income rose 21 percent on more hauling and higher prices, despite the weak economic recovery.
"Considering the sluggish environment, our increased load volume in the first half of 2012 indicates to me, we are executing very well and taking market share," said CEO Henry Gerkens. He predicted that the economy would keep growing, but at a "very slow gradual pace."
The company predicted that earnings in the third quarter, which ends in September, will be 71 cents to 75 cents per share, bracketing analysts' expectations of 74 cents per share.
Second-quarter net income was $35.9 million, or 76 cents per share, compared with $29.6 million, or 62 cents per share, a year earlier. Revenue rose 9 percent to $736 million from $675.6 million.
Analysts expected 74 cents per share on revenue of $751.1 million.
The Jacksonville, Fla., company said its trucks carried 8 percent more loads than a year ago and it raised truck pricing, although more slowly than in the past. Revenue per load rose for all types of shipments except those on independent contractors working under exclusive lease arrangements with Landstar, the company's biggest division. Those prices were flat.
Kevin Jones of The Trucker staff can be reached for comment at firstname.lastname@example.org.
Find more news and analysis from The Trucker, and share your thoughts, on Facebook.