Horizon's 1Q profit jumps; it raises annual guidance

Horizon Lines Inc., which accounts for 36 percent of the shipments from the mainland to Hawaii, Alaska, Guam and Puerto Rico, said yesterday its net income more than doubled in the first quarter.

The second-largest ocean shipper in the islands posted net income of $7.1 million, or 21 cents a share, compared with $2.4 million, or 7 cents a share, in the year-earlier quarter. Adjusted earnings of 13 cents a share was within the company's previously announced guidance of 10 cents to 15 cents a share and matched analysts' consensus.

Lingering volume softness in Puerto Rico and an extended winter in Alaska contributed to revenue slipping 0.5 percent to $273.7 million from $274.9 million.

Horizon, which said it overcame "challenging conditions" in the first quarter, forecast an improving market environment throughout the remainder of the year. It raised full-year earnings guidance to $1.62 to $1.73 a share from $1.45 to $1.59 a share, but lowered full-year revenue guidance to between $1.2 billion and $1.21 billion from previous guidance of $1.215 billion to $1.225 billion.

For the second quarter, Horizon said it was forecasting operating revenue of $295 million to $300 million and earnings per share of 29 cents to 34 cents.

Last week, Horizon said it was raising its fuel surcharge for its Hawaii trade by 1.25 percentage points to 20.75 percent, effective May 6