According to a highly placed source, Landstar System Inc., the massive freight broker and third-party logistics provider with major exposure to Ukraine has ceased its activities there in the aftermath of Russia’s invasion.
According to FreightWaves, the Ukrainian agency of Jacksonville, Florida-based Landstar (NASDAQ: LSTR) is “down” as of Saturday.
According to the source, the agency’s Ukrainian operations earn up to $1.1 billion in annual revenue. This would amount to almost 15% of the company’s $6.53 billion in revenue for the fiscal year 2021. According to the source, it employs approximately 400 employees.
According to the source, the impact of the action is significant enough for the corporation to consider filing an 8-K with the Securities and Exchange Commission. An 8-K filing is intended for unexpected or extraordinary occurrences that may have an impact on the operations of a firm.
Landstar disclosed in its annual 10-K filing with the SEC that several of its agencies continue operations in Ukraine. On Saturday, Landstar management did not respond to demands for comment.
Landstar employs hundreds of independent sales agents as well as a network of owner-operators known as Business Capacity Operators. Landstar drivers are not subject to a compulsory dispatch system and are free to pick up whatever load they wish.
Landstar had a remarkable 2021, culminating in a fantastic fourth quarter in which it set all-time quarterly records for revenue, operating and net income, and diluted earnings per share. The board of directors declared a one-time cash dividend of $2 per share in late 2021.
