Landstar, Ryder, TransForce Earnings Rise; Universal Falls 3%

Truckload carrier Landstar System Inc., leasing specialist Ryder System Inc. and diversified North American carrier TransForce Inc. reported higher second-quarter earnings, but net income fell 3% at Universal Truckload Services Inc.

Landstar, based in Jacksonville, Florida, rode increases in truck volume to achieve 13% higher net income of $40.5 million, or 92 cents per share, while Miami-based Ryder System also raised second-quarter net income by 13%.  Higher leasing, rental and logistics profit pushed net income to $85.4 million, or $1.60 per share.

TransForce net income rose 72% to C$64.1 million ($51.9 million) or 62 Canadian cents, driven by contributions from acquisitions during 2014.

Universal’s net income fell 3% to $13.3 million as trucking revenue fell in line with reduced demand for steel and other freight.

Revenue at Landstar climbed 7% to $868.4 million.

Landstar CEO Jim Gattoni said in a statement that truck shipments rose 9%, including 10% in flatbed and 8% for van freight. Flatbed revenue rose 2%, while van revenue rose 8%. All but 6% of loads were moved by truck.

In the second quarter of 2014, Landstar earned $35.9 million, or 80 cents. Landstar is No. 10 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.

Ryder added 6,000 vehicles to its lease fleet compared with last year in response to increasing demand and reported a 10% rental revenue increase.

At Supply Chain Solutions, which ranks No. 13, new logistics business gained in the consumer goods and technology sector raised profit before tax by 56%.

Revenue fell $21.7 million, or 1%, to $1.66 billion, pushed down by a $63 million reduction in fuel services revenue. Net income in last year’s second quarter was $75.4 million, or $1.41.

Second-quarter trends should continue at Ryder after an 8% rise in profit before tax to $122.8 million at the leasing and rental unit.

No, 9 TransForce, based in Montreal, reported a 23% rise in revenue. Last year, the company bought U.S. truckload carrier Transport America and Contrans Group, based in western Canada.

“TransForce delivered solid operating results driven by the contribution from last year’s selective acquisitions,” CEO Alain Bedard said. “This strategy more than offset the impact of a weaker economy on business volumes and of lower oil prices.”

Both the truckload and less-than-truckload profit nearly doubled, with earnings before interest and taxes of C$41.1 million for truckload and C$19.8 million in the LTL business. Waste management profit fell more than 40% and courier fell 3%.

 “Demand for our transportation and logistics services met our recent expectations, reflecting continuing weakness in truckload volumes but steady volumes and firm pricing in other businesses,” Universal Truckload CEO Jeff Rogers said.

Universal, which ranks No. 27 and is based in Warren, Michigan, experienced a 4% drop in revenue to $295 million. Truckload revenue dipped nearly 9%, and logistics revenue was little changed at $75.1 million. Intermodal revenue rose 17% to $39.8 million.

In contrast to higher trucking industry results, Union Pacific Corp. reported net income fell 7% to $1.2 billion, or $1.38 per share, as rail revenue from coal, crude oil and industrial products cratered. Intermodal revenue slipped 3%, but shipments increased 2%. Revenue for the quarter fell 10% to $5.43 billion.

“Solid core pricing gains were not enough to overcome a significant increase in demand,” CEO Lance Fritz said.