Landstar System (LSTR) 8-K Landstar System Reports Increased Fourth Quarter Revenue and Earnings Per Diluted Share

EXHIBIT 99.1

For Immediate Release	Contact: Jim Gattoni
	Landstar System, Inc.
	www.landstar.com
January 31, 2008	904-398-9400

LANDSTAR SYSTEM REPORTS INCREASED FOURTH QUARTER REVENUE
AND EARNINGS PER DILUTED SHARE

Jacksonville, FL – Landstar System, Inc. (NASDAQ: LSTR) reported consolidated revenue for the fourth quarter of 2007 of $643 million compared to $611 million for the 2006 fourth quarter. Net income for the thirteen-week period ended December 29, 2007 was $29.0 million, or $0.54 per diluted share, compared to net income of $28.7 million, or $0.50 per diluted share, for the thirteen-week period ended December 30, 2006. Net income included $317 thousand in the 2007 fourth quarter compared to $1.5 million, or $0.03 per diluted share, in the 2006 fourth quarter, from revenue of $2.3 million and $14.7 million in the 2007 and 2006 fourth quarters, respectively, for services provided under the contract between Landstar Express America, Inc. and the United States Department of Transportation/Federal Aviation Administration (the “FAA”). Operating income in the 2007 fourth quarter included $515 thousand of income related to revenue under the FAA contract compared to $2.4 million in the 2006 fourth quarter.

Landstar’s carrier group of companies generated $454 million and $440 million of revenue in the 2007 and 2006 thirteen-week periods, respectively. In the 2007 and 2006 thirteen-week periods, the carrier group invoiced customers $52.1 million and $38.4 million, respectively, in fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue. Landstar’s global logistics group of companies generated $180 million of revenue in the 2007 thirteen-week period, which included $2.3 million related to transportation services provided under the FAA contract, compared with $162 million of revenue, which included $14.7 million related to

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transportation services provided under the FAA contract, in the 2006 thirteen-week period.

Net income for the fiscal year ended December 29, 2007 was $109.7 million, or $1.99 per diluted share, compared to net income of $113.1 million, or $1.93 per diluted share, in the fiscal year ended 2006. Net income included $1.3 million, or $0.02 per diluted share, in the fiscal year ended 2007 compared to $8.9 million, or $0.15 per diluted share, in the fiscal year ended 2006, from revenue of $8.5 million and $100.7 million in the 2007 and 2006 fiscal years ended, respectively, for services provided under the FAA contract. Operating income in the fiscal year ended 2007 included $2.2 million of income related to revenue under the FAA contract compared to $14.6 million in the fiscal year ended 2006. Overall, consolidated revenue, including revenue under the FAA contract, for the fiscal year ended 2007 was $2.487 billion compared to $2.514 billion for the fiscal year ended 2006. Excluding revenue under the FAA contract from both periods, fiscal year 2007 revenue increased approximately 3 percent over revenue in the 2006 fiscal year.

Landstar’s carrier group of companies generated $1.808 billion of revenue in the fiscal year ended December 29, 2007, compared with $1.797 billion in the fiscal year ended December 30, 2006. In the fiscal years ended 2007 and 2006, the carrier group invoiced customers $173.6 million and $167.8 million, respectively, in fuel surcharges that were passed on 100 percent to business capacity owners and excluded from revenue. Landstar’s global logistics group of companies generated $642 million of revenue, which included $8.5 million related to transportation services under the FAA contract, in the fiscal year ended 2007 compared with $683 million of revenue, which included $100.7 million related to the transportation services provided under the FAA contract, in the fiscal year ended 2006.

Landstar System, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.0375 per share. The dividend is payable on February 29, 2008 to stockholders of record at the close of business on February 8, 2008. It is the intention of the Board of Directors to continue to pay a quarterly dividend.

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Commenting on Landstar’s 2007 fourth quarter performance, Landstar’s President and CEO Henry Gerkens said, “Excluding the revenue for services provided under the FAA contract, Landstar’s revenue increased 7.4 percent quarter over quarter. Revenue at the carrier group increased 3 percent, while revenue at Landstar’s global logistics group, excluding FAA revenue from both the 2007 and 2006 fourth quarters, increased an outstanding 20 percent. Additionally, excluding the net income effect of revenue generated under the FAA contract from each of the 2007 and 2006 fourth quarters, Landstar’s diluted earnings per share increased over 12 percent quarter over quarter. Overall, although van pricing remained challenging, market share gains resulted in stronger volumes across both of the company’s operating segments. In short, Landstar had a very good quarter in a difficult freight market.”

“Landstar continues to generate outstanding returns. Trailing twelve month return on average shareholders’ equity remained high at 51 percent and return on invested capital, net income divided by the sum of average equity plus average debt, was 33 percent. During the 2007 fourth quarter, Landstar purchased 1,266,000 shares of its common stock at a total cost of $50,441,000 bringing the total number of common shares purchased during the fiscal year ended December 29, 2007 to 4,093,000 at a total cost of $176,590,000. The Company may purchase an additional 734,400 shares of its common stock under its authorized share purchase program.”

Gerkens continued, “January of any given year is typically the slowest month of the year. Nevertheless, through the first part of January 2008, we continued to see volume growth in our core business at a rate consistent with the quarter-over-quarter growth rate experienced in the 2007 fourth quarter. There continues to be pressure on van pricing, however, it appears to be stabilizing. I also anticipate volumes to continue to strengthen.”

“Assuming pricing indeed has stabilized and volumes continue to strengthen, I anticipate revenue for the first quarter of 2008 as compared to the first quarter of 2007 to grow in the mid-to-high single digits, while revenue growth for the full 2008 fiscal year compared to the full fiscal year 2007 to grow in the high single to low double digits. I anticipate Landstar’s earnings for the 2008 first quarter to be within a range of $0.41 to

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$0.46 per diluted share and I anticipate diluted earnings per share for the 2008 full fiscal year to be within a range of $2.00 to $2.25 per share.”

Landstar will provide a live webcast of its quarterly earnings conference call this afternoon at 2 pm ET. To access the webcast, visit the Company’s website at www.landstar.com; click on “Investor Relations” and “Webcasts,” then click on “Landstar’s Fourth Quarter 2007 Earnings Release Conference Call.”

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are “forward-looking statements”. This press release contains forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies, expectations and intentions. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “plans,” “predicts,” “may,” “should,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or workers’ compensation claims; unfavorable development of existing claims; dependence on independent sales agents; dependence on third party capacity providers; disruptions or failures in our computer systems; a downturn in domestic or international economic growth or growth in the transportation sector; substantial industry competition; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10K for the 2006 fiscal year, described in Item 1A Risk Factors, and other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and Landstar undertakes no obligation to publicly update or revise any forward-looking statements.

About Landstar:

Landstar System, Inc. delivers safe, specialized transportation services to a broad range of customers worldwide. The Company identifies and fulfills shippers’ needs through the coordination of individual businesses comprised of independent sales agents and third-party transportation capacity providers. Landstar’s carrier group

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delivers excellence in complete over-the-road transportation services. Landstar’s global logistics group provides third party logistics services, including international and domestic multimodal (over-the-road, air, ocean and rail) transportation, contract logistics and warehousing services. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market^® under the symbol LSTR.

(Tables follow)

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Landstar System, Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)

	Fiscal Year Ended				Thirteen Weeks Ended
	Dec 29,		Dec 30,		Dec 29,		Dec 30,
	2007		2006		2007		2006
Revenue	$	2,487,277	$	2,513,756	$	642,865	$	611,279
Investment income		5,347		4,250		1,244		1,661
Costs and expenses:
Purchased transportation		1,884,207		1,890,755		489,426		460,344
Commissions to agents		200,630		199,775		52,056		50,081
Other operating costs		28,997		45,700		7,789		8,575
Insurance and claims		49,832		39,522		10,954		9,292
Selling, general and administrative		125,177		134,239		30,175		31,430
Depreciation and amortization		19,088		16,796		5,043		4,566
Total costs and expenses		2,307,931		2,326,787		595,443		564,288
Operating income		184,693		191,219		48,666		48,652
Interest and debt expense		6,685		6,821		2,221		1,871
Income before income taxes		178,008		184,398		46,445		46,781
Income taxes		68,355		71,313		17,414		18,091
Net income	$	109,653	$	113,085	$	29,031	$	28,690
Earnings per common share	$	2.01	$	1.95	$	0.55	$	0.51
Diluted earnings per share	$	1.99	$	1.93	$	0.54	$	0.50
Average number of shares outstanding:
Earnings per common share		54,681,000		57,854,000		53,062,000		56,728,000
Diluted earnings per share		55,156,000		58,654,000		53,422,000		57,328,000
Dividends paid per common share	$	0.1350	$	0.1100	$	0.0375	$	0.0300

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Landstar System, Inc.
Selected Segment Information
(Dollars in thousands)
(Unaudited)

	Fiscal Year Ended						Thirteen Weeks Ended
	Dec 29,			Dec 30,			Dec 29,			Dec 30,
	2007			2006			2007			2006
External Revenue
Carrier segment	$	1,808,391		$	1,796,616		$	453,536		$	439,836
Global Logistics segment		642,020			682,542			180,124			162,462
Insurance segment		36,866			34,598			9,205			8,981
External revenue	$	2,487,277		$	2,513,756		$	642,865		$	611,279
Operating Income
Carrier segment	$	180,247		$	181,550		$	44,705		$	44,152
Global Logistics segment		21,397			31,433			8,523			6,080
Insurance segment		34,055			35,673			8,469			11,617
Other		(51,006	)		(57,437	)		(13,031	)		(13,197	)
Operating income	$	184,693		$	191,219		$	48,666		$	48,652

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Landstar System, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

	Dec 29,			Dec 30,
	2007			2006
ASSETS
Current assets:
Cash and cash equivalents	$	60,750		$	91,491
Short-term investments		22,921			21,548
Trade accounts receivable, less allowance of $4,469 and $4,834		310,258			318,983
Other receivables, including advances to independent contractors, less allowance of $4,792 and $4,512		11,170			14,198
Deferred income taxes and other current assets		28,554			25,142
Total current assets		433,653			471,362
Operating property, less accumulated depreciation and amortization of $88,284 and $77,938		132,369			110,957
Goodwill		31,134			31,134
Other assets		31,845			33,198
Total assets	$	629,001		$	646,651
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Cash overdraft	$	25,769		$	25,435
Accounts payable		117,122			122,313
Current maturities of long-term debt		23,155			18,730
Insurance claims		28,163			25,238
Other current liabilities		55,366			58,478
Total current liabilities		249,575			250,194
Long-term debt, excluding current maturities		141,598			110,591
Insurance claims		37,631			36,232
Deferred income taxes		19,411			19,360
Shareholders’ equity:
Common stock, $.01 par value, authorized 160,000,000 shares, issued 65,630,383 and 64,993,143 shares		656			650
Additional paid-in capital		132,788			108,020
Retained earnings		601,537			499,273
Cost of 13,121,109 and 9,028,009 shares of common stock in treasury		(554,252	)		(377,662	)
Accumulated other comprehensive gain/(loss)		57			(7	)
Total shareholders’ equity		180,786			230,274
Total liabilities and shareholders’ equity	$	629,001		$	646,651

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Landstar System, Inc.
Supplemental Information
(Unaudited)

	Fiscal Year Ended					Thirteen Weeks Ended
	Dec 29,		Dec 30,			Dec 29,		Dec 30,
	2007		2006			2007		2006
Carrier Segment
External revenue generated through (in thousands):
Business Capacity Owners(1)	$	1,288,070	$	1,270,649		$	317,638	$	306,389
Other third party truck capacity providers		520,321		525,967			135,898		133,447
	$	1,808,391	$	1,796,616		$	453,536	$	439,836
Revenue per revenue mile	$	2.04	$	2.02		$	2.08	$	2.02
Revenue per load	$	1,612	$	1,621		$	1,623	$	1,647
Average length of haul (miles)		791		803			780		814
Number of loads		1,121,900		1,108,300			279,400		267,100
Global Logistics Segment
External revenue generated through (in thousands):
Business Capacity Owners(1) (2)	$	103,155	$	103,588		$	26,980	$	25,280
Other third party truck capacity providers		361,257		396,141			99,913		93,395
Rail, Air, Ocean and Bus Carriers (3)		177,608		182,813	��		53,231		43,787
	$	642,020	$	682,542		$	180,124	$	162,462
Revenue per load(4) (5)	$	1,572	$	1,528		$	1,744	$	1,584
Number of loads (4) (5)		402,900		380,700			101,900		93,300

	As of		As of
	Dec 29,		Dec 30,
	2007		2006
Capacity
Business Capacity Owners(1) (6)		8,403		8,516
Other third party truck capacity providers:
Approved and active(7)		16,053		15,247
Approved		9,362		8,574
		25,415		23,821
Total available truck capacity providers		33,818		32,337
Agent Locations		1,397		1,345

(1)	Business Capacity Owners are independent contractors who provide truck capacity to the Company under exclusive lease arrangements.
(2)	Includes revenue generated through Carrier Segment Business Capacity Owners.
(3)	Included in the 2007 and 2006 fiscal year periods was $481,000 and $25,067,000, respectively, of revenue attributable to buses provided under the FAA contract. Included in the 2006 thirteen-week period was $2,035,000 of revenue attributable to buses provided under the FAA contract.
(4)	Number of loads and revenue per load exclude the effect of revenue derived from transportation services provided under the FAA contract and warehousing.
(5)	The number of loads in the fiscal year period ended 2006 were restated. This change had no impact on reported revenue in either period.
(6)	Trucks provided by business capacity owners were 8,993 and 9,205 at December 29, 2007 and December 30, 2006, respectively.
(7)	Active refers to other third party truck capacity providers who have moved at least one load in the past 180 days.