Horizon Lines reported a net loss of $17.9 million in the fourth quarter of 2012, ending Dec. 23, 2012, down 124 percent from a profit of $74.2 million in the fourth quarter of 2011, ending Dec. 25, 2011.
Quarterly operating revenue was $259.8 million, dropping from $264.1 million in the fourth quarter of 2011.
“Horizon Lines recorded a 6.1 percent decline in fourth-quarter container volume, which was partially offset by a 3.1 percent rise in container revenue, net of fuel surcharges, compared with the same period a year ago,” said Sam Woodward, president and CEO, in a written statement. “A volume decline in Puerto Rico drove the overall decrease in revenue and revenue loads.”
Fourth-quarter results were also negatively impacted by a $4.3 million restructuring charge related to the company’s December decision to reduce sailings between Jacksonville, Fla., and San Juan, Puerto Rico, to once a week, and to further reduce the company’s non-union workforce, Woodward added.
For the full year of 2012, the shipping company reported a net loss of $74.4 million, compared with a net loss of $53.2 million in 2011. Annual operating revenue rose 3.9 percent to $1.07 billion from $1.03 billion in 2011.
The carrier expects 2013 revenue container volume and rates to be slightly higher than 2012 levels, excluding the loss of revenue loads associated with the Puerto Rico service scope reduction. It also predicted that 2013 financial results would “significantly exceed” 2012 results.