Horizon Lines in its fiscal fourth quarter ended Dec. 20 swung to a profit of $1.3 million from a loss of $20.3 million in the same quarter of fiscal 2008.
The company said Friday its fourth-quarter profit would have been higher, at $3.7 million, but for adjusting for antitrust-related legal expenses and for a voluntary separation program for certain union employees and tax adjustments that totaled $2.4 million.
The largest Jones Act carrier’s revenue fell to $299.7 million, down almost 5 percent below the $314.7 figure it realized in the year earlier period as container volume fell on its trade lanes.
“Our revenue remained under pressure from lower cargo volumes … but the rate of decline improved for the second consecutive quarter,” said Chuck Raymond, chairman, president and chief executive officer. “We also maintained stable revenue per container, net of fuel, and generated increased revenue from our logistics business,” he said.
For the full fiscal year ended Dec. 20, Horizon lost $31.3 million, compared to $2.6 million in fiscal 2008. When the carrier’s results are adjusted for extraordinary items, Horizon earned a profit of $14.5 million, compared to a net loss of $2.6 million or to an adjusted profit of $25.2 million in fiscal 2008.
Horizon’s full-year operating revenue decreased 11.2 percent to $1.16 billion from $1.3 billion for 2008.
Raymond said he expects conditions in the markets where it operates to remain “challenging” in 2010. “Some of our market economies are beginning to exhibit possible signs of modest recovery, which could be further fueled by the federal economic stimulus program,” he said.
“While we see the potential for volume stabilization and slight rate improvement given this scenario, we also expect ongoing fuel price volatility and increased contractual labor costs and benefits assessments through 2010,” he said.
The company said Friday its fourth-quarter profit would have been higher, at $3.7 million, but for adjusting for antitrust-related legal expenses and for a voluntary separation program for certain union employees and tax adjustments that totaled $2.4 million.
The largest Jones Act carrier’s revenue fell to $299.7 million, down almost 5 percent below the $314.7 figure it realized in the year earlier period as container volume fell on its trade lanes.
“Our revenue remained under pressure from lower cargo volumes … but the rate of decline improved for the second consecutive quarter,” said Chuck Raymond, chairman, president and chief executive officer. “We also maintained stable revenue per container, net of fuel, and generated increased revenue from our logistics business,” he said.
For the full fiscal year ended Dec. 20, Horizon lost $31.3 million, compared to $2.6 million in fiscal 2008. When the carrier’s results are adjusted for extraordinary items, Horizon earned a profit of $14.5 million, compared to a net loss of $2.6 million or to an adjusted profit of $25.2 million in fiscal 2008.
Horizon’s full-year operating revenue decreased 11.2 percent to $1.16 billion from $1.3 billion for 2008.
Raymond said he expects conditions in the markets where it operates to remain “challenging” in 2010. “Some of our market economies are beginning to exhibit possible signs of modest recovery, which could be further fueled by the federal economic stimulus program,” he said.
“While we see the potential for volume stabilization and slight rate improvement given this scenario, we also expect ongoing fuel price volatility and increased contractual labor costs and benefits assessments through 2010,” he said.