Horizon hit by big loss

   Horizon Lines said Tuesday that it had large losses in 2011, but turned a proft in the fourth quarter.
   The line said the profitable last quarter reflects its decision to shed its transpacific container service and logistics business.
   The domestic container carrier, which serves Alaska, Hawaii and Puerto Rico, announced its 2011 results on the same day that it said it had completed a restructuring to deleverage its balance sheet and return five ships to a charterer.
   Horizon had a net loss of $229.4 million in the fiscal year ending Dec. 25, 2011, compared to a net loss of $58 million the prior year, according to its annual report filed with the Securities and Exchange Commission on Tuesday. Of that, $176.2 million came from discontinued operations and $53.2 million from continuing operations.
    The company’s revenue in 2011 was $1.03 billion, up slightly from the $1 billion it recorded in 2010.
    For the fourth quarter 2011, the company reported a net loss of $63.6 million, compared to a loss of $56.1 million in the same 2010 period. But the company said that the net loss was the result of $137.8 million in losses from discontinued operations. The company had a $74.2 million profit from continuing operations in the fourth quarter.
    Revenue was $264.1 million in the fourth quarter of 2011, compared to $256.1 million the prior year.
    Container volume for the 2011 fourth quarter totaled 60,279 loads, a 5.8 percent decrease from the 63,977 loads for the same period a year ago. The volume decline resulted from an additional week in the 2010 fourth quarter. Excluding the extra week, fourth-quarter 2011 container volume increased 0.2 percent from 60,133 loads a year ago. Alaska volume was flat, while Hawaii and Puerto Rico were up slightly, excluding the extra week.
    Container rates, exclusive of fuel, were $3,136 for the 2011 fourth quarter, up slightly from $3,126 a year ago.
    Commenting on the outlook for 2012, the company said it expects container volumes will increase modestly, in the 1 to 2 percent range, and rates, net of fuel, will increase slightly from 2011 levels.
   Fuel prices for 2012 are projected in the $730 to $735 per ton range, excluding costs for low sulfur fuel that will be required in its service to Alaska, beginning in August. Fuel costs averaged $631 per ton in 2011.
    The company said it is projecting earnings before interest, taxes, depreciation and amortization of approximately $75 million this year. It said the expected decline from 2011 adjusted EBITDA of $82.1 million is primarily due to fuel and duplicate vessel operating expenses associated with the planned dry-docking of three vessels in Asia, lower terminal services revenues, and projections of continued slow economic growth.