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Landstar System 1Q Profit Sinks, Misses Views

The Associated Press

NEW YORK (AP) — Landstar System Inc. said Wednesday its first-quarter profit sank 41 percent, missing Wall Street's expectations, as the trucking and logistics company shipped less freight as demand waned.

The company earned $13.9 million, or 27 cents per share, compared with net income of $23.7 million, or 45 cents per share, a year earlier.

Revenue slipped fell 23 percent to $469.2 million from $608.8 million.

Analysts polled by Thomson Reuters expected a profit of 29 cents per share on sales of $494.3 million.

Landstar said it hauled 17 percent less freight in the first quarter than a year earlier. This was mostly due to lower auto and line haul shipments, Landstar said, although shipping volume fell across nearly every sector.

Pricing pressure also hurt the company as competition remained fierce.

For the second quarter, the company said that if the rate of revenue declines are similar to the first quarter, it should earn 40 to 45 cents per share. This figure also takes cost reduction initiatives into account, Landstar said.

But Landstar warned the prediction was not official.

"This in no way should be interpreted as any sort of guidance, but rather a demonstration of the resiliency of our model and that Landstar's ability to generate earnings is somewhat insulated from possible effects of a prolonged recession," the company said in a statement.

Analysts polled by Thomson Reuters currently predict 44 cents per share.

Shares lost 23 cents during the regular session to close at $35.11. They lost 1 cent in aftermarket trading to reach $35.10.