35



                                                                  EXHIBIT 11.2

                         LANDSTAR SYSTEM, INC. AND SUBSIDIARY
                       CALCULATION OF DILUTED EARNINGS PER SHARE
                       (In thousands, except per share amounts)
                                       (Unaudited)




                                                  Fiscal Years Ended           
                                       December 26,  December 27,  December 28,
                                          1998           1997          1996    
                                       ------------  ------------  ------------

                                                                   
Income from continuing operations     $     34,481   $     25,428  $     19,647
Discontinued operations, net
  of income taxes                          (22,589)          (738)         (722)
                                      ------------   ------------  ------------

Net income                            $     11,892   $     24,690  $     18,925
                                      ============   ============  ============






Average number of common shares
    outstanding                             11,022         12,541        12,785
                                      ============   ============  ============

  Plus: Incremental shares from
    assumed exercise of stock 
    options                                    101             39            46
                                      ------------   ------------  ------------
Average number of common shares              
    and incremental shares                                
    outstanding                             11,123         12,580        12,831
                                      ============   ============  ============

Diluted earnings (loss) per share:
Income from continuing operations     $       3.10   $       2.02  $       1.53
Loss from discontinued operations            (2.03)         (0.06)        (0.06)
                                      ------------   ------------  ------------

Diluted earnings per share            $       1.07   $       1.96  $       1.47
                                      ============   ============  ============