Landstar optimistic in spite of lower earnings
Landstar System Inc., reported its share of lower revenue and income numbers in its third-quarter earnings statement, but the nation’s largest owner-operator carrier also sees a turnaround taking shape.
The company earned $20 million from revenue of $501 million in the quarter that ended. Sept. 30. Comparable net income a year ago was $33 million from revenue of $733 million.
The good news/bad news, from Henry Gerkens, president and CEO: “Notable 2009 third-quarter over 2008 third-quarter revenue declines continued to be generated from the U.S. Department of Defense, as well as with respect to our substitute line-haul service offering. On a positive note, revenue generated from the automotive sector began to improve for the first time in a couple of years.”
A separate report this week confirmed the strong numbers on auto shipments. Production of cars and light trucks in North America during September reached the highest level since October 2008, said CSM Worldwide, an automotive industry analyst firm.
For overall business, Gerkens also noted a slowing of the decline in number of hauls. From 2008 to 2009, that measurement dropped 16 percent from second quarter to second quarter, but only 11 percent over the third quarters.
“I see a gradually improving overall freight environment, and I believe that the worst is over,” he said.
– Max Heine