Horizon sees flat earnings in fourth quarter

Horizon sees flat earnings in fourth quarter Horizon Lines said it earned $10.7 million in the fourth quarter of 2007, up slightly from $10.6 million in the fourth quarter of 2006.
   Revenue was $316 million for the quarter, up 9.9 percent from $287.5 million in the year-earlier period.
   “Over the past year, we have managed to offset soft market conditions in Puerto Rico and rising fuel costs by aggressively managing costs and introducing valuable complementary services to our customers,” said Chuck Raymond, chairman, president and chief executive officer. “Going forward, we will continue to execute on our long-term strategy of offering our customers innovative shipping and logistics solutions to enhance our core service offerings. We believe we are well positioned for continued growth and profitability in our markets.”
   Based on current market conditions, the company updated its earnings guidance for the full year 2008, with projections of operating revenue at $1.35 billion to $1.37 billion compared to $1.21 billion in 2007 and $1.16 billion in 2006.
   For the full year, Horizon had earnings of $28.9 million in 2007, compared to $72.4 million in 2006.
   But the company projects profits will bounce back in 2008. The company said it expected diluted earnings per share to be in the $2.01 to $2.26 range, compared to 85 cents in 2007 and $2.14 in 2006.
   Raymond pointed to several accomplishments in 2007 that he said would benefit the company going forward. Inserting new ships in its TP-1 service to Guam and the Far East and reshuffling its existing Jones Act vessels have given the company “appropriate capacity in all trades to support volume growth in future years, which will further improve the cost efficiency and reliability of the ocean services we provide to our customers.”
   He also said refinancing has resulted in “lower cost of capital, improved cash flow, enhanced flexibility and greater liquidity that will allow us to take advantage of future growth opportunities.”
   The company is also benefiting from the integration of recent acquisitions Hawaii Stevedores and Aero Logistics.
   Raymond also said a new subsidiary, called Horizon Logistics, “will enable us to grow our fully integrated logistics services offerings.”