December 5, 2000 Jacksonville, FL - Landstar System, Inc. (NASDAQ: LSTR) announced today it expects earnings for the 2000 fourth quarter will be between $1.70 to $1.85 per diluted share. Landstar expects revenue to be approximately the same as the 1999 fourth quarter or approximately 8% over the 2000 third quarter revenue. The Company anticipates a slight decline in 2000 fourth quarter operating margin and its overall effective income tax rate for fiscal year 2000 to be approximately 38.5%.
In addition, Landstar announced that it expects the number of trucks operated by Landstar business capacity owners to increase by approximately 50 trucks during the 2000 fourth quarter.
Landstar also announced, that year-to-date through November 2000, its carrier group had invoiced customers in excess of $28 million of fuel surcharges that were passed 100% to its business capacity owners and excluded from Landstar revenue. In October and November alone, Landstar invoiced approximately $8.8 million in fuel surcharges. The Landstar carrier group does not record fuel surcharges as revenue as it always passes them directly to Landstar business capacity owners.
Landstar Chairman, President and Chief Executive Officer Jeff Crowe said, "Despite the tough operating environment for our business capacity owners caused by an increase in fuel prices and a softer economy, the Landstar business model is expected to generate record fourth quarter earnings per share results."
Landstar will provide a live webcast of its fourth quarter earnings update conference call Thursday December 14, 2000 at 2 p.m. EST. To access the webcast visit the Company's website at www.landstar.com. Click on Investor Relations and then on the microphone at the top of the page. StreetEvents.com will also carry the broadcast live.