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Horizon Lines 4Q Profit Up Slightly (HRZ $21.20)

Friday February 1, 10:11 am ET
Horizon Lines 4th-Qtr Profit Up Slightly As Stable Vessel Rates Offset Higher Fuel Costs

CHARLOTTE, N.C. (AP) -- Horizon Lines Inc. said Friday its fourth-quarter earnings edged up as stable vessel rates and a diversified cargo mix balanced higher fuel costs and weakness in the container shipping company's Puerto Rican business.

The company earned $10.7 million, or 32 cents per share, compared with $10.6 million, or 31 cents per share, in the year-ago quarter.

Operating revenue rose 10 percent to $316 million, from $287.5 million in the prior-year period.

Analysts were expecting a profit of 31 cents per share on revenue of $312.4 million, according to a poll by Thomson Financial.

The company said a more profitable cargo mix, stable rates in offshore markets, and cost cuts offset continuing weakness in its Puerto Rican business and "unprecedented increases" in fuel prices.

For the full-year, profit sank 60 percent to $28.9 million, or 85 cents per share, compared with $72.4 million, or $2.14 per share, in 2006. Revenue rose 4 percent to $1.21 billion.

Shares soared $1.14, or 6 percent, to $20.05 in morning trading.