U.S. domestic carrier Horizon Lines posted a first-quarter net loss of $13.2 million, compared with $10 million a year earlier, and said container volume fell 1.9 percent but is starting to trend upward.
Revenue during the latest quarter rose to $286.1 million from $274 million a year earlier, as a $14.8 million increase in fuel surcharges offset a $4 million drop in container revenue.
The latest quarter’s results included a $1.2 million pre-tax charge for legal expenses related to an antitrust investigation of Jones Act carriers and for severance costs. First-quarter results in 2009 included $5.3 million in antitrust-related legal fees and restructuring charges.
Chuck Raymond, the carrier’s chairman, president and CEO, said the “challenging” quarter was in line with expectations. “After a slow start to what typically is our weakest quarter of the year, overall volume turned slightly positive in March, a trend that has continued in April,” Raymond said. “We also managed costs well and our overall market share appears to be holding steady.
“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,” he said.
Horizon recently announced plans to launch its own Asia-U.S. West Coast liner service next year, using eastbound capacity that Maersk Line now uses on a take-or-pay arrangement. Horizon also extended a terminal services agreement with APM Terminals.
Raymond said Horizon is “beginning to see signs of economic stabilization and modest improvement in its Hawaii and Alaska trades but that “the four-year recession in Puerto Rico is continuing.”
“Given these overall trends, we could experience modest volume improvement as the year progresses. Accordingly, we still expect our 2010 financial performance to be in the range of 2009 actual results,” he said.
Revenue during the latest quarter rose to $286.1 million from $274 million a year earlier, as a $14.8 million increase in fuel surcharges offset a $4 million drop in container revenue.
The latest quarter’s results included a $1.2 million pre-tax charge for legal expenses related to an antitrust investigation of Jones Act carriers and for severance costs. First-quarter results in 2009 included $5.3 million in antitrust-related legal fees and restructuring charges.
Chuck Raymond, the carrier’s chairman, president and CEO, said the “challenging” quarter was in line with expectations. “After a slow start to what typically is our weakest quarter of the year, overall volume turned slightly positive in March, a trend that has continued in April,” Raymond said. “We also managed costs well and our overall market share appears to be holding steady.
“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,” he said.
Horizon recently announced plans to launch its own Asia-U.S. West Coast liner service next year, using eastbound capacity that Maersk Line now uses on a take-or-pay arrangement. Horizon also extended a terminal services agreement with APM Terminals.
Raymond said Horizon is “beginning to see signs of economic stabilization and modest improvement in its Hawaii and Alaska trades but that “the four-year recession in Puerto Rico is continuing.”
“Given these overall trends, we could experience modest volume improvement as the year progresses. Accordingly, we still expect our 2010 financial performance to be in the range of 2009 actual results,” he said.
