Horizon posts US$3.7 million profit after US$31 million loss

HORIZON LINES has posted a second quarter net profit of US$3.7 million, up from a loss of $31.1 million in the same period last year.

For the full year, the carrier anticipates adjusted EBITDA performance to be in the range of 2009 results, reports Reuters. For 2009, an adjusted EBITDA amounted to $112.7 million and adjusted net income stood at $14.5 million.

Horizon Lines plans to launch a transpacific liner service in December, calling at the ports of Ningbo and Shanghai. The company had provided slots on its eastbound ships deployed on its service to Guam and China to Maersk Line, but ended the slot charter agreement in February, and started marketing its own inbound service from China, reported American Shipper.

"The improvement is partly due to the $24 million legal settlement and expenses charged to the second-quarter 2009 accounts relating to an anti-trust lawsuit on the trade between the US mainland and Puerto Rico," said an Alphaliner report.

"The carrier attributed the improvement to higher contributions on the Alaskan trade lane, terminal services to third-party customers and cost savings. It said that Alaska, Hawaii and Guam are showing signs of economic recovery while Puerto Rico remains in recession," said Alphaliner.

Revenue in the quarter ending June 20 was $305.6 million, up from $278.5 million for the second quarter of 2009, an increase of 10 per cent.

"Conditions improved somewhat, but remained challenging during the second quarter as the pace of our business continued to be impacted by the slow, uneven global economic recovery," said Chuck Raymond, chairman, president and chief executive officer.
(Source:www.schednet.com)