Americas News
Horizon Lines Reduces Q1 Loss
U.S. shipping company Horizon Lines reports it shrank its net loss in the first quarter of 2013 to $20.1 million, compared with $26.8 million in the same period last year as it implemented cost-cutting efforts that reduced its revenue.
Horizon say it's operating revenue fell 7 percent to $244.5 million, from $263.4 million in the period last year, due largely to the reduction of sailings to San Juan, Puerto Rico to one per week.
The company was also hit with a $4.1 million charge related to moving its northeast service to Philadelphia, but CEO Sam Woodward said the move should help strengthen its financial performance.
Bunker costs for the period fell to $675 per metric tonne (pmt) for the period, 2.8 percent lower than the $693 pmt it paid in the same quarter a year ago.
Container volume dropped 10.1 percent to 51,321 revenue loads, mainly due to the reduced San Juan service, while revenue per container net of fuel charges was up 2.5 percent to $4,363.
The company said its earnings interest, tax, and amortisation expenses (EBITA) rose for the quarter.
"Horizon Lines first-quarter adjusted EBITDA increased 25.7% over the same period a year ago, driven largely by improved fuel recovery, reduced dry-dock transit and crew-related expenses, lower vessel charter expense, continued execution of the Puerto Rico business-improvement plan, and reduced overhead," Woodward said.
"The positive factors resulting in adjusted EBITDA growth were partially offset by reduced container volume, higher stock-based compensation expense, mechanical issues on one of our vessels and increased vessel operating expenses."
For the remainder of 2013, the company anticipates slightly higher revenue container volume and than last year, lower vessel lease expenses due to the acquisition of three new vessels, and overhead savings due to cuts in its workforce announced in December 2012.
Horizon announced the move to Philadelphia, from Elizabeth, New Jersey, in March, saying the location and terminal facilities would offer advantages including faster transit times, a strong intermodal network, quicker inspections and better warehousing and transloading capabilities.
