Horizon Lines posts $13.2M loss
By Alan Yonan Jr.
Advertiser Staff Writer
Shipping operator Horizon Lines Inc. posted a wider-than-expected first-quarter loss as fuel and labor costs rose and container volumes fell on all routes other than its Hawai'i/Guam service.
Horizon, the second largest shipper serving Hawai'i, lost $13.2 million, or 43 cents per share, compared with a loss of $10 million, or 33 cents per share, a year earlier, the company reported yesterday.
"During the quarter, we faced ongoing rate pressures, high fuel costs and increased contractual labor expenses relative to last year, and we expect these to continue," said Chuck Raymond, Horizon's chairman, president and chief executive officer.
Excluding charges for legal expenses and severance costs, Horizon said its adjusted loss was 39 cents per share. Analysts on average expected an adjusted loss of 25 cents per share, according to Thomson Reuters. Revenue rose 5 percent to $286.1 million.
Horizon said container volumes fell by 1.9 percent from the same quarter a year earlier due primarily to weak market conditions in Puerto Rico and Alaska. Meanwhile, Horizon registered a modest volume increase on its Hawai'i/Guam route.
"Our business in Hawai'i is reflecting a modest economic recovery and Alaska is stabilizing," Raymond said. "Hawai'i and Guam have improved nicely. They're up a couple of percentage points in March and we're seeing the same in April."
Horizon's shares fell 56 cents to close at $5.53 yesterday on the New York Stock Exchange.