Landstar CEO Sees Higher Truck Rates

Landstar System Chief Executive Officer Henry Gerkens said the company may benefit from higher freight pricing this year as excess truck capacity shrinks, Bloomberg reported.

The carrier’s revenue per load improved in the first two months of the year, Gerkens said in a conference call with analysts and investors, Bloomberg reported.

He also affirmed Landstar’s first-quarter earnings forecast of 41 to 46 cents a share.

Analysts expect 44 cents a share, the average of 13 estimates compiled by Bloomberg.
Landstar was the only major U.S. trucking company to report an increase in profit for the fourth quarter of 2007.

There is still some weakness in truck freight demand, which Landstar is offsetting by increasing revenue per load, Gerkens said.

Landstar’s plan for the year is to add new agents and increase its market penetration, Bloomberg reported.

U.S. truck freight volume increased in January for the third straight month compared with a year earlier, according to American Trucking Associations, rising 5.3% in January.

Landstar System is ranked No. 12 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.