Landstar, J.B. Hunt report lower earnings
Landstar System Inc. on Wednesday reported second quarter net income was $17.9 million compared to $29.8 million in the same 2008 period.
Revenue was $491.2 million, compared to $697.7 million in the second quarter of 2008.
“In the 2009 second quarter, Landstar’s revenue continued to be negatively impacted by the severe recession in the domestic and global economies,” said Henry Gerkens, president and chief executive officer. “As was the case in the 2009 first quarter, revenue declines were experienced in just about every sector, including revenue generated from the U.S. Department of Defense.”
The company said there were significant revenue declines in the automotive sector and that the number of loads hauled in the second quarter decreased 16 percent compared to the 2008 second quarter.
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Earlier this week, J.B. Hunt Transport Services Inc. said it had second quarter net income of $24 million including a pretax charge of $10.3 million, to write down the value of certain tractors held for sale. Last year's second quarter net income was $50.6 million.
Second quarter operating revenue was $770 million, a 21 percent decrease from the $977 million for the second quarter 2008. The company said the decrease was primarily attributable to lower fuel surcharge revenue, which reflect significantly lower fuel costs in the current quarter.
'We saw evidence in the current quarter of gradual improvement in demand which has been soft for three years. While current quarter volumes did show seasonal improvements across our four business segments, pricing has been challenging following the implementation of various bids and proposals submitted earlier in the year from intermodal and truck customers,” said Kirk Thompson, J.B. Hunt's president and CEO. “We are not pleased with the resulting pricing in these two segments. While some in the industry have described the pricing environment as irrational and unsustainable, it is reflective of the sharp contractions in freight volumes this year. We would expect pricing to show some improvement with increased demand or as capacity continues to exit the market.”