Landstar expectation top profit

NEW YORK: Freight transportation and logistics company Landstar System Inc posted a higher-than-expected rise in quarterly net profit on strong pricing and an improving freight environment.

Second-quarter net income rose 22 percent to $29.6 million, or 62 cents a share, from $24.4 million or 49 cents a share, a year earlier. Analysts on average were expecting 59 cents a share, according to Thomson Reuters I/B/E/S.

"I would characterize the overall second quarter freight environment as a little choppy, but moving in an upward direction," Henry Gerkens, the company's chief executive, said in a statement. "Pricing continued to be strong."

Freight haulers have benefited in recent quarters from strong pricing due to tight supply of drivers.

Revenue at the Jacksonville, Florida-based company was $675.6 million. That was above Wall Street estimates of $659.2 million, according to Thomson Reuters I/B/E/S.

The company raised its quarterly dividend 10 percent to 5.5 cents per share.

Landstar said it expects third-quarter revenue and profit to be in line with the second quarter.

The company provides third-party logistics services by matching shipments with available truck drivers, ships or planes.

Copyright Reuters, 2011