Landstar System 3Q profit plunges 39 percent

Landstar System 3rd-quarter profit plunges 39 percent as recession hits transportation

• On 5:46 pm EDT, Wednesday October 14, 2009

JACKSONVILLE, Fla. (AP) -- Transportation and logistics supplier Landstar System Inc. said its third-quarter profit fell 39 percent as the recession cut into shipping.

The company said it earned $20.1 million, or 39 cents per share, compared with $32.8 million, or 62 cents per share, a year earlier.

Analysts expected 38 cents per share, according to a survey by Thomson Reuters.

Revenue tumbled 32 percent, to $500.7 million from $732.8 million a year ago. That was below the $511 million forecast by analysts.

CEO Henry Gerkens said revenue fell across many sectors of the business, including Defense Department accounts, but that revenue per load began to stabilize in the quarter.

"I see a gradually improving overall freight environment, and I believe that the worst is over," Gerkens said. "I am cautiously optimistic as we close out 2009."

Shares rose $1.24, or 3.3 percent, to $38.72 in regular trading, then fell 23 cents to $38.49 in extended trading after the earnings report.