Horizon Lines reported a net loss from contiinuing operations for the first quarter ending March 25 of $26.8 million, compared to $20.2 million in the same 2011 period.
Revenue was $263.4 million in the first quarter, compared to $240.7 million recorded in the first quarter of 2011.
Including discontinued operations, such as the transpacific FSX service to Guam and Asia which ended last year, and logistics operations, the loss was $32.5 million in the first quarter, compared to $34.1 million in the same 2011 period.
“Horizon Lines generated slightly improved revenue container volume and higher EBITDA and adjusted EBITDA in the first quarter relative to a year ago, despite challenges that included severe winter weather in Alaska, higher fuel prices and increased expenses,” said Stephen H. Fraser, interim president and chief executive officer. EBITDA (earnings before interest, taxes, depreciation, and amortization) was $5.6 million in the first quarter, compared to $5 million in the first quarter of 2011.
Fraser said “Hawaii’s performance improved significantly on solid customer support and an improving economy. Alaska’s results were also better despite record cold and snowfall, which had a significant, adverse impact on customer demand and operations. Alaska was buoyed in part by domestic southbound volume that was driven by a strong seafood market. Earnings declined in Puerto Rico from the same period a year ago, due to continued slow business conditions and vessel service disruptions.
“In 2012, we are making significant investments in our Jones Act fleet with the dry-docking of three of our Puerto Rico vessels in Asia,” he said. “Although dry-docking our vessels in Asia will add considerable transit expense in 2012, it will also facilitate extensive maintenance and high-quality enhancements that are instrumental in helping maintain service integrity in the Puerto Rico market.”
Container volume for the first quarter of 2012 totaled 57,086 revenue loads, up 0.4 from 56,841 loads for the same period a year ago. Unit revenue per container totaled $4,257 in the 2012 first quarter, compared with $3,896 a year ago. First-quarter unit revenue per container, net of fuel surcharges, was $3,225, up 1.0 percent from $3,192 a year ago. Bunker fuel costs averaged $693 per metric ton in the first quarter, 26.5 percent above the average price of $548 per ton in the same quarter a year ago.
The company said it projects container volumes will increase modestly, in the 1-to-2 percent range, and that container rates, net of fuel surcharges, will rise slightly from 2011 levels. Fuel prices for 2012 are currently projected in the $725-$730 per-ton range, excluding additional costs for low sulfur fuel that will be required in the Alaska trade lane, effective Aug. 1. – Chris Dupin
Horizon projects modest growth in 2012
