Horizon Lines earnings up 49.4 percent
Horizon Lines Inc., the second-largest ocean shipper serving Hawaii, posted a 49.4 percent gain in second-quarter earnings as improved revenue and cargo mix offset a volume shortfall.
The Charlotte, N.C.-based company, however, missed analysts' expectations and forecast third-quarter earnings below Wall Street's expectations, in light of softness in its Puerto Rico market.
"Alaska today is strong, and Hawaii and Guam are healthy," aid Chuck Raymond, chairman, president and chief executive.
Horizon, which accounts for 36 percent of the shipments from the mainland to Hawaii, Alaska, Guam and Puerto Rico, had net income of $9.6 million, or 28 cents a share, compared with $6.4 million, or 19 cents a share, a year ago. Excluding debt extinguishment costs, Horizon's earnings per share were 29 cents. Analysts were looking for 32 cents a share.
Revenue rose 2 percent to $295.7 million.
Raymond said Hawaii volume softened but rebounded toward the end of the quarter.
Horizon's Hawaii Stevedores Inc. purchase, completed June 25, is already showing benefits, he added.