YRC Worldwide Inc (YRCW)

[califax]

OT: Landstar System Q2 Profit Rises 36%

7/14/2010 4:54 PM ET
http://www.rttnews.com/Content/EarningsNews.aspx?Id=1359195

Transportation and logistics provider Landstar System Inc. (LSTR: News ) said Wednesday its second-quarter profit increased 36% over last year, driven by stronger volumes and pricing as well as double-digit revenue growth in all the segments. Further, the company's board has raised the quarterly dividend by 11%. The company provided earnings outlook for the third quarter, which came in-line with the Street expectations.

The Jacksonville, Florida-based company reported net income of $24.4 million or $0.49 per share for the second quarter, up from $17.9 million or $0.35 per share in the prior year quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.48 per share for the second quarter. Analysts' estimates typically exclude special items.

Operating income for the quarter grew 34% to $40.0 million from $29.8 million in the year-ago quarter.

Second quarter revenue increased 31% to $641.7 million from $491.2 million in the same quarter last year. Sixteen analysts had a consensus revenue estimate of $600.04 million for the second quarter.

Truck transportation revenue hauled by business capacity owners and truck brokerage carriers was $592.0 million in the second quarter, up 30.5% from $453.8 million a year ago.

Landstar's Chairman, President and CEO, Henry Gerkens, said, "The total number of truck transportation loads hauled by business capacity owners and truck brokerage carriers in the 2010 second quarter was the highest reported number of truck transportation loads hauled by business capacity owners and truck brokerage carriers in any quarter of any year in Landstar's history."


Revenue hauled by rail, air and ocean cargo carriers grew 24% to $35.0 million from $28.2 million in the previous year quarter.

Total costs and expenses increased to $602.0 million from $461.6 million in the prior year quarter.

Further, Landstar said its board has declared a quarterly dividend of $0.05 per share, an 11% increase. The dividend is payable on August 27, 2010 to stockholders of record at the close of business on August 9, 2010.

During the second quarter, the company purchased 510,062 shares of its common stock at a total cost of $20.6 million. Under the company's authorized share purchase program, the company currently has a total of 745,000 shares of its common stock available for purchase.

For the first-half of 2010, Landstar posted net earnings of $41.6 million or $0.83 per share, up from $31.8 million or $0.61 per share in the previous year period.

Revenue for the period increased to $1.2 billion from $960.4 million in the prior year period.

For the third quarter, Landstar anticipates earnings in the range of $0.47 to $0.52 per share, and revenue to increase in a range of 25% to 33% over the third quarter 2009. Street expects the company to earn $0.50 per share on revenue of $609.85 million for the third quarter.

Looking ahead, Gerkens said, "Recent trends in June, and thus far in July, indicate that both the revenue per load and the number of loads hauled remain strong compared to the corresponding prior year periods. I expect these trends to continue throughout the 2010 third quarter."

Landstar's peer, Lowell, Arkansas-based JB Hunt Transport Services Inc. (JBHT: News ) is slated to release its second quarter results on July 15. Analysts expect the company to report earnings of $0.36 per share on revenue of $911.62 million for the second quarter.