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UPDATE 1-Landstar Q3 profit rises, but outlook cautious

* Q3 EPS 71 cents vs 69 cents Wall Street view

* Revenue $717.2 mln, matching estimates

* Landstar sees Q4 EPS 63-68 cents vs 71 cents Wall St view

Oct 25 (Reuters) - Landstar System Inc, the freight transportation and logistics group, on Thursday beat third-quarter profit estimates, but forecast fourth-quarter results below expectations based on uncertain economic and U.S. policy trends.

Landstar Chief Executive Henry Gerkens said he is ``somewhat cautious'' in the short term, with the economy likely to grow sluggishly until tax and budgetary issues are resolved.

``In the first few weeks of the 2012 fourth quarter, we have seen a slowing in demand beyond the choppiness experienced during the 2012 third quarter,'' he said in a statement.

Third-quarter net income rose to $33.1 million, or 71 cents a share, from $30.2 million, or 64 cents a share, a year before.

The results topped the average Wall Street estimate of 69 cents, according to Thomson Reuters I/B/E/S.

The company forecast fourth-quarter profit between 63 cents and 68 cents per share, below the average Wall Street target of 71 cents.

Revenue for the Jacksonville, Florida-based company rose to $717.2 million from $684 million a year before and matched estimates.

Landstar provides third-party logistics services by matching shipments with available truck drivers, ships or planes.

Revenue from freight hauled by truck via its so-called independent business capacity owners and brokerage carriers rose to $663.5 million, or 93 percent of total revenue, from $625.8 million, or 91 percent of revenue, a year ago.

Revenue from freight moved by its rail, air and ocean cargo carriers declined to $38.9 million, or 5 percent of revenue, from $44.5 million, or 7 percent a year ago.