(RTTNews) - Landstar System Inc. (LSTR: News ), a trucking company, Wednesday said its third quarter profit dropped sharply from a year ago, yet came in above estimates by a penny. The downward trend in profit reflects revenue declines, negatively impacted by weak demand amid meltdown in domestic and global economies. The company, however, said the worst is over and overall freight movement is gradually increasing. Looking ahead, Landstar said it expects fourth quarter earnings roughly in line, while expecting revenues below estimates.

For the third quarter, net income attributable to Landstar System and subsidiary plunged 38.8% to $20.08 million or $0.39 per share from $32.82 million or $0.62 per share in the same quarter a year ago.

On average, 17 analysts' polled by Thomson Reuters expected earnings of $0.38 per share for the quarter. Analysts' estimate typically excludes one-time items.

Landstar's revenue for the quarter dropped to $500.67 million from $732.75 million in the prior-year quarter. Analysts expected revenues of $511.02 million for the quarter.

The Jacksonville, Florida-based company noted that the declines in revenue continued to be generated from the US Department of Defense as well as with respect to substitute line haul service offering. Revenue generated from the automotive sector, however, began to improve for the first time in a couple of years.

Sequentially, in the second quarter, Landstar's profit declined to $18.00 million or $0.35 per share from $30.00 million or $0.56 per share in the year quarter. Revenues also declined, negatively impacted by the severe recession in the domestic and global economies. Revenues were $491.20 million for the quarter.
Amongst others in the industry, JB Hunt Transport Services Inc. (JBHT), reported a sharp decline in second-quarter profit of $24.0 million or $0.19 per share, as revenues decreased 21% from corresponding period a year ago, on weaker demand resulting from the continuing economic recession. Total operating revenues for the second quarter fell 21% to $770 million.

Based on third quarter results, Landstar President and Chief Executive Officer Henry Gerkens said, "I believe this is a clear indication that the decrease in demand that began during the latter part of the 2008 third quarter will provide for easing volume comparisons into the company's 2009 fourth quarter and continuing into 2010."

Landstar's net revenue margin, defined as revenue less purchased transportation and commissions to agents divided by revenue, was 17.7%, up from 14.8% in the 2008 third quarter.

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