Horizon Lines loses $10 million in Q1
Horizon Lines lost $10 million in the first quarter, ended March 31, compared to a profit of $700,000 in the same quarter last year as volume declined and other unusual charges mounted.
The largest Jones Act carrier said its adjusted net loss totaled $4.7 million after adjustments for a restructuring charge and legal expenses related to anti-trust charges.
The line took a charge of $800,000 for reductions in its non-union workforce. Its legal costs for defending itself against the Department of Justice's investigation of price-fixing totaled $4.4 million.
Operating revenue declined 11 percent to $272.4 million from $305.9 million a year earlier.
The Charlotte-based carrier said the largest factor in the decline was reduced fuel surcharges resulting from lower fuel prices, followed by a 7.1 percent overall volume decline.
“Volume declines during the quarter exceeded historic seasonal softness due to the continued sharp slowdown of our Hawaii market, ongoing economic stagnation in Puerto Rico, and a severe winter in Alaska," said Chuck Raymond, chairman, president and chief executive.
The volume decline was partially offset by revenue per container improvements in all trade lanes. Revenue per container increased by $107, or 3.3 percent excluding fuel, from the prior year.
Looking forward, Raymond said he expects that modest container rate increases, lower fuel prices and other costs reductions will help offset anticipated slight volume declines for the rest of the year.
The company’s earnings before interest, taxes, depreciation and amortization totaled $14 million for the first quarter, compared with $27.3 million for the same period a year ago.
Adjusted EBITDA for the 2009 first quarter was $19.2 million. EBITDA and adjusted EBITDA for the 2009 first quarter were impacted by the same factors affecting operating income.
The largest Jones Act carrier said its adjusted net loss totaled $4.7 million after adjustments for a restructuring charge and legal expenses related to anti-trust charges.
The line took a charge of $800,000 for reductions in its non-union workforce. Its legal costs for defending itself against the Department of Justice's investigation of price-fixing totaled $4.4 million.
Operating revenue declined 11 percent to $272.4 million from $305.9 million a year earlier.
The Charlotte-based carrier said the largest factor in the decline was reduced fuel surcharges resulting from lower fuel prices, followed by a 7.1 percent overall volume decline.
“Volume declines during the quarter exceeded historic seasonal softness due to the continued sharp slowdown of our Hawaii market, ongoing economic stagnation in Puerto Rico, and a severe winter in Alaska," said Chuck Raymond, chairman, president and chief executive.
The volume decline was partially offset by revenue per container improvements in all trade lanes. Revenue per container increased by $107, or 3.3 percent excluding fuel, from the prior year.
Looking forward, Raymond said he expects that modest container rate increases, lower fuel prices and other costs reductions will help offset anticipated slight volume declines for the rest of the year.
The company’s earnings before interest, taxes, depreciation and amortization totaled $14 million for the first quarter, compared with $27.3 million for the same period a year ago.
Adjusted EBITDA for the 2009 first quarter was $19.2 million. EBITDA and adjusted EBITDA for the 2009 first quarter were impacted by the same factors affecting operating income.