LANDSTAR SYSTEM IMPROVES EARNINGS

LANDSTAR SYSTEM IMPROVES EARNINGS

   Landstar System Inc. reported a first-quarter net income of $8.5 million, up 1.2 percent from the year earlier period, in record revenue of $336 million, up 1.5 percent.

   Landstar's carrier group, which provides over-the-road transportation services, saw first-quarter revenue improve to $270 million, from $263 million. Landstar's multimodal services group, which provides expedited, contract logistics and intermodal transportation services, saw revenue slip to $59 million, from $62 million.

   'During the first two months of the quarter demand was relatively soft,' said Jeff Crowe, chairman and chief executive officer of Jacksonville, Fla.-based Landstar System. 'However, business levels strengthened in March and Landstar finished the quarter on a positive note.'

   The company's first-quarter operating margin deteriorated slightly due to increased insurance and claims costs, which offset Landstar's cost-savings program, Crowe said.

   He anticipates second-quarter earnings will be in the 'mid to upper end' of analysts projections of $1.21 to $1.42 per diluted share for Landstar.

   Landstar's carrier group comprises Landstar Gemini Inc., Landstar Inway Inc., Landstar Ligon Inc. and Landstar Ranger Inc.

   The Landstar multimodal group comprises Landstar Express America Inc. and Landstar Logistics Inc.