Horizon Lines Inc., which operates a fleet of containerships and a logistics business, said Thursday its first-quarter profit rose sharply, boosted by a tax gain and rate increases that
helped offset weaker freight volumes.
Quarterly earnings increased to $7.1 million, or 21 cents per share, from $2.4 million, or 7 cents per share during the same period last year. Excluding tax-related gains from both periods, the company earned $4.5 million, or 13 cents per share in the latest quarter, and $3.6 million, or 11 cents per share a year ago.
Revenue fell modestly to $273.7 million from $274.9 million. Analysts expected revenue of $286.2 million.
The company blamed its revenue shortfall on a 6.5 percent slide in freight volumes, due to soft market conditions in Puerto Rico and an extended winter in Alaska. Horizon Lines added that a mix of higher-margin cargo, general rate increases and fuel recoveries nearly offset the volume softness.