Horizon Lines’ net falls 97 percent on one-time charges
Horizon Lines Inc., which accounts for 36 percent of the shipments from the mainland to Hawaii, Alaska, Guam and Puerto Rico, said today its net income tumbled 97 percent in the third quarter due to one-time charges that included a refinancing of its capital structure.
The Charlotte, N.C.-based company, the second-largest ocean shipper in the islands, posted earnings of $1.6 million, or 5 cents a share, compared with $52.9 million, or $1.57 a share, a year ago.
Adjusted earnings that took into account a debt payoff, secondary offering expenses in 2006, and tonnage tax, were $20.7 million, or 61 cents a share, versus $20.2 million, or 60 cents a share, a year ago. Analysts were expecting 63 cents a share after one-time charges.
Revenue rose 5.4 percent to $321.1 million from $304.7 million.
Horizon also reaffirmed its full-year earnings guidance with earnings per share of $1.56 to $1.68 on operating revenue of $1.19 billion to $1.2 billion. Analysts are forecasting earnings per share of $1.60.
In addition, the company forecast earnings per share for the fourth quarter of 53 cents a share to 65 cents a share on revenue of $300 million to $310 million. Analysts are forecasting earnings per share of 55 cents.
"Volume softness, primarily caused by lingering difficult economic conditions in our Puerto Rico trade lane, was offset by unit revenue improvements, benefits derived from our Horizon EDGE process re-engineering and customer service program and tight controls on our costs," said Chuck Raymond, chairman, president and chief executive of Horizon.