Horizon Lines posts Q4 profit of US$1.3 million

OCEAN Shipping and integrated logistics company Horizon Lines has announced that fourth quarter 2009 net income totalled US$1.3 million, compared to a net loss of $20.3 million for the same period in 2008.

Adjusted fourth quarter 2009 net income totalled $3.7 million, after excluding charges for antitrust-related legal expenses and for a voluntary separation programme for certain union employees and tax adjustments totalling $2.4 million, a company statement said.

Fourth quarter operating revenue decreased by five per cent compared with the same quarter a year earlier, to $299.7 million.

Fourth quarter volume was down 4.2 per cent year on year

"We expect conditions in the markets where we operate to remain challenging in 2010," said Chuck Raymond, chairman, president and chief executive officer.

"Some of our market economies are beginning to exhibit possible signs of modest recovery, which could be further fuelled by the (US) federal economic stimulus programme. While we see the potential for volume stabilisation and slight rate improvement given this scenario, we also expect ongoing fuel price volatility and increased contractual labour costs and benefits assessments through 2010."

He added: "For 2009, we produced adjusted free cash flow totalling $70.5 million, compared with $59.8 million for 2008," Mr Raymond said. "We used the cash generated in the fourth quarter to voluntarily repay $36.5 million of debt, which followed voluntary payments of $10 million in the third quarter and $5 million in the second quarter. As a result, we ended the year with $28 million less in funded debt than at year end 2008."

(Source: www.schednet.com)