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Landstar System Inc. saw net income reach $61.9 million during the third quarter of 2020, the company reported Oct. 21.
The Jacksonville, Fla.-based transportation and logistics company said net income was $1.61 a diluted share for the three months ending Sept. 26. That compared with $53.3 million, or $1.35 a share, during the prior-year quarter. Total revenue increased by 9% to $1.086 billion from $1.012 billion.
The results were better than the expectations of investment analysts on Wall Street, who had been looking for $1.43 per share and quarterly revenue of $1.05 billion, according to Zacks Consensus Estimate.
“Truckload volumes increased in the 2020 third quarter by 3% as compared to the 2019 third quarter, and truck revenue per load increased by 5% as compared to the 2019 third quarter,” Landstar CEO Jim Gattoni said in a statement. “The achievement of both revenue and diluted earnings per share in excess of our updated guidance was primarily the result of the further sequential increases in the number of loads and revenue per load on loads hauled via truck from Sept. 9 through the end of the fiscal month.”
Gattoni also credited the variable cost business model, highly diversified customer base and geographically dispersed network of independent agents and third-party truck capacity for providing resiliency and flexibility.
“While U.S. manufacturing production continued to lag prior-year levels, the agent network capitalized on opportunities with new customers and executed by sourcing truck capacity for shippers experiencing rapid volume growth and/or supply chain disruption,” Gattoni said. “During the 2020 third quarter, approved and active third-party truck carrier count increased approximately 10% compared to the 2020 second quarter to over 41,000 carriers.”
Gattoni also noted that through the first few weeks of fiscal July, the number of loads and revenue per truckload each were below the prior-year quarter. The number of loads and revenue per load on truckloads hauled turned positive on a weekly basis compared to the prior year in the first week of August.
Truck transportation revenue hauled by independent business capacity owners and truck brokerage carriers during the quarter was $1.006 billion at 93% of revenue. This compared to $932.2 million during the prior-year quarter at 92% of revenue.
Truckload transportation revenue hauled by van equipment was $666.6 million during the quarter compared to $575 million during the same time last year. Truckload transportation revenue hauled from unsided and platform equipment was $314.5 million compared to $331.8 million last year. Revenue hauled by rail, air and ocean cargo carriers was $62.2 million at 6% of revenue. That compared to $59.3 million or 6% of revenue during the prior-year quarter.
Landstar ranks No. 9 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 41 on the TT Top 50 list of the largest logistics companies.
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