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Landstar System Inc. reported record second-quarter earnings per share of $1.53 on second-quarter net income of $61.1 million, which compares with $1.51 per share on net income of $62.5 million during the same period a year ago.
The Jacksonville, Fla.-based trucking and logistics service provider generated $1.05 billion during the quarter, which was less than the $1.18 billion generated during the second quarter of 2018, Landstar reported to investors in a news release.
The decrease in revenue came as a result of decelerating rates of growth in both truck revenue per load, which began in late 2018, and truckloads that continued through the first quarter of 2019, according to Jim Gattoni, Landstar president.
“The freight environment softened further from the 2019 first quarter to the 2019 second quarter, putting additional downward pressure on rates, especially in the spot market where the company primarily operates,” Gattoni said. “Although demand for freight services has slowed and capacity has become more readily available as compared to 2018, I believe we continue to be in a relatively healthy freight environment.”
Landstar generates the bulk of its revenue from services provided by business capacity owners, who are independent contractors that provide truck capacity under exclusive lease arrangements. The company also brokers freight to other carriers and provides rail intermodal and freight forwarding services.
The number of loads hauled by BCO independent contractors increased marginally, to 248,810 from 247,010.
Truck transportation revenue hauled by BCOs and truck brokerage carriers in the 2019 second quarter was $968.2 million, or 93% of revenue, compared with $1.105 billion, or 93% of revenue, in the 2018 second quarter, the company reported.
Truckload transportation revenue hauled via van equipment in the 2019 second quarter was $605.4 million compared with $713.3 million in the 2018 second quarter. Revenue hauled by rail, air and ocean cargo carriers was $56.8 million, or 5% of revenue, in the 2019 second quarter compared with $60.3 million, or 5% of revenue, in the 2018 second quarter.
Gattoni said 2018 was a record year, and that has drawbacks when writing 2019 reports.
“We entered 2019 knowing we would face very difficult year-over-year comparisons after a record-setting 2018,” Gattoni said.