JACKSONVILLE, Fla., -- Landstar System, Inc. reported record third quarter revenue of $733 million and record third quarter diluted earnings per share of $0.62 in the 2008 third quarter, compared to revenue of $635 million and diluted earnings per share of $0.54 in the 2007 third quarter. Net income was $32.8 million in the 2008 third quarter compared to net income of $29.3 million in the 2007 third quarter.

Revenue hauled by BCO Independent Contractors in the third quarter of 2008 was $371 million, or 51 percent of revenue, compared to $351 million, or 55 percent of revenue, in the 2007 third quarter. In the 2008 and 2007 third quarters, the Company invoiced customers $92 million and $45 million, respectively, in fuel surcharges that were passed on 100 percent to BCO Independent Contractors and excluded from revenue. Revenue hauled by third- party truck brokerage carriers was $276 million, or 38 percent of revenue, in the 2008 third quarter compared to $225 million, or 35 percent of revenue, in the 2007 third quarter. Revenue hauled by rail, air, and ocean cargo carriers was $49 million, or 7 percent of revenue, in the 2008 third quarter compared to $46 million, or 7 percent of revenue, in the 2007 third quarter.

Revenue in the thirty-nine-week period ended September 27, 2008 increased approximately 11 percent to $2.039 billion compared to $1.844 billion in the 2007 thirty-nine-week period. Net income for the 2008 thirty-nine-week period was $86.3 million, or $1.62 per diluted share, compared to net income of $80.6 million, or $1.45 per diluted share, for the 2007 thirty-nine-week period.

Revenue hauled by BCO Independent Contractors in the 2008 thirty-nine-week period was $1.071 billion, or 53 percent of revenue, compared to $1.036 billion, or 56 percent of revenue, in the 2007 thirty-nine-week period. In the 2008 and 2007 thirty-nine-week periods, the Company invoiced customers $241 million and $125 million, respectively, in fuel surcharges that were passed on 100 percent to BCO Independent Contractors and excluded from revenue. Revenue hauled by third-party truck brokerage carriers was $766 million, or 38 percent of revenue, in the 2008 thirty-nine-week period compared to $648 million, or 35 percent of revenue, in the 2007 thirty-nine- week period. Revenue hauled by rail, air, and ocean cargo carriers was $146 million, or 7 percent of revenue, in the 2008 thirty-nine-week period compared to $126 million, or 7 percent of revenue, in the 2007 thirty-nine-week period.

Revenue, net income, and diluted earnings per share in the 2008 thirteen and thirty-nine week periods included $27.6 million, $1.7 million, and $0.03 diluted earnings per share, respectively, for bus capacity provided in connection with evacuation assistance related to the storms that recently impacted the Gulf Coast.

Landstar System, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.04 per share. The dividend is payable on November 28, 2008 to stockholders of record at the close of business on November 3, 2008. It is the intention of the Board of Directors to continue to pay a quarterly dividend. During the 2008 third quarter, Landstar purchased approximately 580,000 shares of its common stock at a total cost of $28.5 million. As of September 27, 2008, there were approximately 2,155,000 shares of the Company's common stock available for purchase under Landstar's authorized share purchase programs.

"Landstar's 2008 third quarter performance was remarkable," said Landstar President and Chief Executive Officer Henry Gerkens. "Revenue and diluted earnings per share in the 2008 third quarter were the highest third quarter revenue and diluted earnings per share in the Company's history. Landstar delivered a 15% increase in revenue over the 2007 third quarter and experienced strong revenue increases across multiple service offerings. Excluding the revenue from bus evacuation services, revenue increased 11% quarter over quarter. Landstar's 2008 third quarter diluted earnings per share increased 15% over its 2007 third quarter diluted earnings per share." Gerkens continued, "The 2008 third quarter included approximately $0.03 per diluted share of costs related to employee bonus accruals not included in the 2007 third quarter and approximately $0.03 per diluted share of income from bus evacuation services. As anticipated, operating margin was slightly impacted by a change in revenue mix, and was 7.5 percent in the 2008 third quarter, compared to 7.8 percent in the 2007 third quarter."

"The resiliency of Landstar's variable cost business model continues to generate outstanding returns and to provide the Company with a strong balance sheet. Trailing twelve month return on average shareholders' equity remained high at 53 percent and trailing twelve month return on invested capital, net income divided by the sum of average equity plus average debt, was 31 percent. As of September 27, 2008, the Company had $103 million in cash and short-term investments and $87 million in outstanding borrowings under its senior credit facility, primarily resulting from borrowings to finance the purchase of its common stock under its authorized share purchase programs. As of September 27, 2008, there was $110 million available for borrowings under the Company's senior credit facility."

Gerkens continued, "Notwithstanding Landstar's impressive third quarter results, the Company experienced reduced freight demand during the latter part of the 2008 third quarter. This trend has continued into early October and based upon the current uncertain economic outlook, I don't foresee that trend reversing in the 2008 fourth quarter. I do anticipate increased revenue in the 2008 fourth quarter when compared to the 2007 fourth quarter. However, that rate of growth will not be at the level experienced in the first nine months of 2008 versus the first nine months of the prior year. I anticipate diluted earnings per share for the 2008 fourth quarter to be similar to that reported in the 2007 fourth quarter."

Amsterdam, NL -- Trading conditions in TNT's European Express business have significantly worsened in September and, based on the volume patterns in the first two weeks of October, TNT expects this pressure to continue in the fourth quarter.

Within a context of severe global volatility in financial markets, the recessionary trend in the economy in Europe has accelerated, causing the volumes in the premium International Express (air) product to decrease around 10%. The Economy Express volumes (road) have continued to grow albeit well below levels of 2007.

In the Express Emerging platforms the growth and margins continued to develop in line with our outlook.

TNT’s Mail business is also developing according to the outlook, producing a robust operating income and cash flow for 2008.

TNT was able to refinance its capital requirements in August, ahead of the deepening of the financial crisis in September/October. Combined with the strong cash flow, this puts TNT on a solid financial footing going forward.

TNT will present an updated outlook for 2008 in its Q3 publication on October 27. The margins in the Express ‘’International & Domestic’’ line of business are currently expected to develop around a solid 9% for the full year, with somewhat lower revenue growth. No changes in other lines of the outlook are currently foreseen.

New Environmental Initiative Is Launched

ATLANTA--The UPS Foundation, the charitable arm of UPS [NYSE: UPS], today announced five grants totaling more than $1 million to support a variety of environmental programs and organizations worldwide.

The grants, which include funds for planting trees, conservation, youth education and volunteerism, reflect the establishment of environmental stewardship as a new focus area by the Foundation.

The new grant awards include:

  • $300,000 to The Nature Conservancy to assist with tree-planting efforts in the Atlantic Forest of Brazil, conservation initiatives for rural residents in the Yunnan Forest in China and reforestation efforts in East Africa’s Highland Forest.

  • $300,000 to the Earth Day Network to support its national civic engagement project to educate youth about environmental issues and provide teachers with lesson plans and environmental impact online tools.

  • $220,000 to Keep America Beautiful (KAB) to support its environmental education initiatives, including the creation of KAB affiliates on college campuses, support for a community volunteer initiative, a challenge grant for KAB affiliates and an environmental partnership grant for UPS Global Volunteer Month to encourage employee participation.

  • $200,000 to the National Park Foundation to fund youth-engagement programs, including First Bloom, which provides children in urban locations (grades 4 through 6) with hands-on environmental learning.

  • $50,000 to the Arbor Day Foundation to plant one tree for each of the first 50,000 UPS customers to begin using UPS electronic billing solutions, which eliminate the need for paper invoices.

At the beginning of 2008, The UPS Foundation adopted a new global philanthropic strategy to strengthen its impact and better leverage UPS’s capabilities. In addition to the new environmental sustainability focus area, the Foundation’s other focus areas include community safety, non-profit effectiveness, economic and global literacy and diversity.

“Protecting the environment is increasingly important to our company, to our customers, our employees and the communities in which we operate around the world, so it is a natural fit for The UPS Foundation,” said Lisa Hamilton, president of The UPS Foundation. “We are proud to partner with each of these esteemed organizations and to support the important work of nurturing our planet.”

Founded in 1951, The UPS Foundation has a tradition of providing support through grant programs and initiatives that help improve the quality of life in communities where UPS employees live and work. Last year, the Foundation donated nearly $46 million to charitable organizations worldwide. For more information on the Foundation, visit community.ups.com.

UPS is the world’s largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at UPS.com.

MIAMI, FL-- Ryder System, Inc., a global leader in supply chain, warehousing and transportation management solutions, today announced it has been named a Top 100 Motor Carrier for 2008 by Inbound Logistics (IL) Magazine. The Top 100 Motor Carriers list is published annually to help shippers identify the trucking companies offering the most innovative and comprehensive services.

"Ryder is honored to be named among the Top 100 motor carriers," said John Williford, President of Global Supply Chain Solutions for Ryder. "This recognition reflects our focus on hiring the best drivers and transportation professionals in the field, constantly upgrading technology to ensure high visibility of information to our customers, and enhancing our processes on an on-going basis to guarantee efficient, high-value service."

IL editors pared down this year's roster by evaluating nearly 200 surveys, poring over online research, and conducting personal interviews via phone and e-mail. IL's annual Top 100 list offers a uniform guide that dually reflects the diversity of the U.S. motor freight market and the unique demands of over-the-road shippers, featuring large LTL and TL carriers with global reach and regional owner/operators with specialized services.

"Inbound Logistics' Top 100 Motor Carriers list helps shippers shift gears and scope out trucking companies that are paving new roads for delivering goods to market and new pathways of innovation that provide the necessary visibility and control their supply chain demands," said Felecia Stratton, Editor of Inbound Logistics.

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