Horizon Lines reports sharp increase in Q3 profits

The Jones Act container carrier said it benefited from an upswing in its Hawaii business.    Horizon Lines said it had a profit of $9.5 million in the third quarter ending Sept. 21, compared with $1.6 million from continuing operations in the third quarter 2013. The results do not include net income from discontinued operations in the third quarter of 2013.
   Revenue was $286.2 million in the third quarter, compared to $273.7 million in the third quarter of 2003.
   Container volume for the 2014 third quarter totaled 64,304 revenue loads, up 8.9 percent from 59,059 loads for the same period a year ago. The company uses the term “revenue containers” to refer to containers that are transported for a charge, as opposed to empty containers.
   The company’s earnings before interest, taxes, depreciation and amortization were $38.7 million, a 12.6-percent improvement over the third quarter of 2013 “driven primarily by lower claims-related expense, higher volume, and lower fuel and labor costs associated with vessel dry-docking,” said Steve Rubin, Horizon’s president and chief executive officer. “The positive factors driving adjusted EBITDA growth were partially offset by lower container rates, and contractual labor and other expense increases.”
   Horizon said, “The improvement was primarily the result of volume increases in our Hawaii market, where tourism and construction activity helped drive modest growth in the Hawaii economy. In addition, our Hawaii business experienced a significant increase in automobile shipments from the award of a contract to transport personal vehicles for military personnel.”
   Horizon said its unit revenue per container totaled $4,019 in the 2014 third quarter, compared with $4,236 a year ago.