Horizon Lines confident about 2007
U.S. Jones Act carrier Horizon Lines Inc. said that it expects a profitable year ahead with cost savings of at least $13 million over last year.
'2007 is shaping up to be another excellent year for Horizon Lines,' said Chuck Raymond, Horizon Lines' chairman, president and chief executive officer. 'We continue to see solid market conditions in each of our trade lanes. Additionally, our TP1 vessel deliveries remain on schedule and the performance of our new ships is exceeding our expectations.'
Based on current market conditions, the company projects full year operating earnings before interest, taxes, depreciation and amortization (EBITDA) of $173 million to $180 million on operating revenue of $1.215 billion to $1.225 billion.
For the first quarter, Horizon Lines expects EBITDA of $33 million to $36 million and operating revenue of $285 million to $290 million.
In a separate development, Horizon Lines' non-vessel-operating common carrier subsidiary, Horizon Lines of Guam, has today started a new service between the United States and the Federated States of Micronesia and the Republic of Palau.
Horizon Lines of Guam now offers through bills of lading for service between Chuuk, Pohnpei, Kosrae, Yap and Palau and the U.S. shipments between the United States and Guam, Tinian and Rota will continue to be booked with Horizon Lines.
The new offering will utilize Horizon Lines' vessels for service between U.S. mainland ports and Guam. FSM Line will provide service between Guam and Chuuk, Pohnpei and Kosrae and Western Pacific Shipping for service between Guam and Yap and Palau.