Horizon Lines lost $18m in Q4
Horizon Lines today swung to a fourth-quarter loss of $18.8 million from a profit of $10.7 million in the prior-year period.
The largest Jones Act carrier said revenues fell to $314.7 million from $316 million in 2007.
Horizon said in an earnings announcement that the loss for the quarter primarily reflects charges and expenses totaling $32.4 million, related to impairment, job cuts and legal costs related to the federal Jones Act anti-trust investigation and related litigation.
Excluding these items, adjusted operating income slipped 0.4 percent to $9.3 million, due to reduced volumes and an 81-percent increase in the average cost of fuel, partially offset by increases in revenue per container and fuel surcharges.
Volumes dropped 5.8 percent amid weakening economies in Hawaii and Puerto Rico, although revenue per container improved across all trade lanes by 7.4 percent from the prior year on a gross basis, and 2.3 percent excluding fuel costs.
"Volumes during the quarter were negatively impacted by the continued sharp downturn of our Hawaii market, and ongoing weakness in Puerto Rico, which is in its third year of recession," said Chuck Raymond, chairman, president and chief executive of Charlotte-based Horizon.
Horizon saw a slight volume increase in the Alaska market. Per-container revenue improved as the carrier focused on refrigerated and other higher-value cargo, Raymond said.
The largest Jones Act carrier said revenues fell to $314.7 million from $316 million in 2007.
Horizon said in an earnings announcement that the loss for the quarter primarily reflects charges and expenses totaling $32.4 million, related to impairment, job cuts and legal costs related to the federal Jones Act anti-trust investigation and related litigation.
Excluding these items, adjusted operating income slipped 0.4 percent to $9.3 million, due to reduced volumes and an 81-percent increase in the average cost of fuel, partially offset by increases in revenue per container and fuel surcharges.
Volumes dropped 5.8 percent amid weakening economies in Hawaii and Puerto Rico, although revenue per container improved across all trade lanes by 7.4 percent from the prior year on a gross basis, and 2.3 percent excluding fuel costs.
"Volumes during the quarter were negatively impacted by the continued sharp downturn of our Hawaii market, and ongoing weakness in Puerto Rico, which is in its third year of recession," said Chuck Raymond, chairman, president and chief executive of Charlotte-based Horizon.
Horizon saw a slight volume increase in the Alaska market. Per-container revenue improved as the carrier focused on refrigerated and other higher-value cargo, Raymond said.