MTS Meeting Set for Long Beach
On August 13-14, the Marine Transportation System National Advisory Council (MTSNAC) is scheduled to consider an industry proposal to upgrade the nation's marine infrastructure. Commending the Council's work, Secretary of Transportation Norman Y. Most trade analysts agree that international trade will at least double by the year 2020 triggering surface transportation gridlock. As a result, the Council has focused on the use of water transportation and the role our waterway system can play in the solution to our nation's highway and rail congestion. During a meeting, which will be held at the Hyatt Regency Hotel in Long Beach, CA, the…
MARAD: U.S. Vessels Can Clear West Coast Backlog
Maritime Administrator Captain William G. Schubert highlighted the capabilities of the U.S.-Flag fleet in an effort to respond to allegations that U.S.-flag vessels are not available to ease present cargo congestion in West Coast ports. "Qualified Jones Act vessels are standing by with available tonnage on the West Coast to assist any shipper or carrier in moving cargo forward as necessary," Schubert stated. Schubert added, "The Maritime Administration is carefully evaluating all potential alternatives that would alleviate congestion in the ports, and expedite the delivery of cargo to its final destination. According to the U.S. CSX-LINES - will divert a ship if necessary to pick up cargo in LA to ease port congestion for Oakland or provide other lifts to ease congestion.
New Chair Selected for MTS National Advisory Council
John Gaughan, Vice President of the American Maritime Congress, has been selected as the new chairman of the Marine Transportation System National Advisory Council (MTSNAC). Gaughan served in the White House as Deputy Assistant to the President and Director, White House Military Office, for Presidents Bill Clinton and George H.W. Bush. He also served at the U.S. Department of Transportation (DOT) as Maritime Administrator from 1985-1989 and as DOT Chief of Staff from 1989-1991. The MTSNAC is a chartered, non-federal body that advises the Secretary of Transportation on Marine Transportation System issues. The Council's membership is comprised of leaders from 30 commercial transportation firms…
Horizon Lines Reports Q3 Results
Horizon Lines, Inc. (NYSE: HRZ) reported financial results for its fiscal third quarter ended September 19, 2010. On a GAAP basis, third-quarter net income was $7.7 million, or $0.25 per diluted share, compared with $8.4 million, or $0.27 per diluted share, for the third quarter of 2009. On an adjusted basis, third-quarter net income totaled $11.0 million, or $0.35 per diluted share, excluding charges of $3.3 million after tax, or $0.10 per diluted share, for antitrust-related legal expenses, an equipment impairment charge and union severance. This compares with 2009 adjusted net income of $11.4 million, or $0.37 per diluted share, after excluding antitrust-related legal expenses and a vessel impairment charge totaling $3.0 million after tax, or $0.10 per diluted share.
Horizon’s Raymond Urges Industry to Ensure Security From the Beginning
"With the question of information integrity now in the forefront, how do we further secure the supply chain when we cannot necessarily trust all the data being provided?" asked Raymond. "All shipment information should be required from the point of the shipment’s origin in advance of container stuffingS. Raymond spoke at the National Defense Industrial Association Transportation Security Administration Conference held in Charleston, S.C., this week. that more than six million containers enter U.S. than 5,000 ships from greater than 50,000 port calls. he said. through to destination. must consistently provide their information on a real-time basis," said Mr. Raymond. he added. processes necessary to shelter our nation. subsequently married to planned and actual cargo events.
Horizon Lines CEO Credits Technology For Defense Effort
Charles G. Mr. Fighter...The Way Ahead" at a meeting of the U. Management Command¹s 599th Transportation Group, U.S. Pacific Command. Change is never easy ... said. in the private sector only hope to accomplish as well. service to your customers. Mr. geopolitical changes in our world. greater, and continues to grow ... air. the war to reach our country. "Today, moms don¹t shout when they call the family to dinner ... instant message everyone. early 1990s. Now, over 600 billion e-mail messages are sent each year. competitive advantage," said Raymond.
CSX Lines Launches an Independent Business and Systems Company
CSX Lines announced the formation of Horizon Services Group, created through the restructuring of the existing organization of CSX Lines. The Horizon system places the entire order-to-cash process online, creating a virtually paperless environment from booking to billing with new information available to all users as it is entered into the system. Utilizing the system, customers will be able to perform quickly and more efficiently a comprehensive array of critical "back-office" functions, including customer service, documentation, e-Business, IT, and other business operating processes. last quarter it reached a landmark of 50 percent of all shipper business booked online.
Horizon Lines Announces Senior Management Promotions
Horizon Lines, Inc., announced several key promotions and realignments of senior management responsibilities. John W. Handy is joining Horizon Lines as Executive Vice President. Reporting to him will be John Keenan, Senior Vice President and Chief Transportation Officer, Ken Privratsky, Vice President and General Manager, Alaska, Gabriel Serra, Vice President and General Manager, Puerto Rico, and Mar Labrador in his new position as Vice President and General Manager, Hawaii/Guam. Handy's major responsibilities will be the continued enhancement of trade lane profitability and system service integrity, the leadership of strategic business development and the further development of the Company's management team as the next generation of leadership.
Horizon Says Company will Work on Debt
Charles G. (Chuck) Raymond, CEO and President of Horizon Lines Inc., said in an interview that the carrier, which completed a initial public offering (IPO) last September, “will generate significant free cash going forward and that will enable us to pay down debt and grow.” Mr. Since going public at $10 a share on September 27, Horizon’s (HRZ) stock has increased as much as 30 per cent and has exceeded the average performance of 2005 IPOs compiled by Renaissance Capital. “It indicates what we are capable of achieving,” said Raymond. While some analysts have urged the carrier to begin replacing some of its older tonnage, Chuck Raymond noted that there are “well-defined plans” for updating the fleet but would not disclose specifics at this time.
Horizon Charters New Ships
Horizon Lines, Inc. principle to charter five new U.S. terms from Ship Finance International Limited. speed. linking the U.S. service that is being served with five Jones Act-qualified vessels today. and Alaska, as well as cargo moving between other U.S. U.S.-built and U.S.-manned vessels. Charles G. transit time between the U.S. voyage from Asia to the U.S. meet the future needs of Horizon Lines' customers well into the future. services.
Horizon Applauds Introduction of Harbor Maintenance Tax Legislation
Charles G. (Chuck) Raymond, Chairman, President & CEO of Horizon Lines, Inc. expressed strong support for legislation introduced in the U.S. Senate that would exempt coastwise shipping of containerized cargo from the Harbor Maintenance Tax (HMT). The legislation, introduced by Senator Frank Lautenberg (NJ), would exempt water carriage of non-bulk cargo between ports from the HMT. This would eliminate both the tax and associated paperwork burdens that discourage shippers from routing cargo by sea. By removing these barriers, the legislation would encourage use of the fuel-efficient marine mode to move cargo along our nation's coasts, helping ease highway and rail congestion and the demand for imported oil.
Horizon Restructuring Plan
Horizon Lines, Inc. (NYSE: HRZ) announced a non-union workforce restructuring initiative targeted at reducing annualized labor-related costs by an estimated $7m to $10m. The company intends to reduce its workforce by at least 10%, or approximately 70 of its 700-plus non-union employees. Initially, the company will offer a voluntary severance program to certain eligible non-union employees. If the company is unable to achieve anticipated reductions from the voluntary program, it intends to implement an involuntary severance program for non-union employees. The company expects to complete the workforce reduction initiative by January 31, 2009, and it is expected to result in a fourth-quarter 2008 charge of approximately $3.5m to $5m pretax, or $0.11 to $0.16 per fully diluted share.
Horizon Lines Reports Q3 Results
Horizon Lines, Inc. (NYSE: HRZ), reported results for its fiscal second quarter ended June 21, 2009. On a GAAP basis, the company reported a net loss of $(31.1) million, or $(1.02) per share, on revenue of $278.5 million. The results reflect certain items, including a $20 million charge related to the previously disclosed class-action legal settlement in Puerto Rico, and a $10.5 million tax valuation allowance. After excluding these and other charges totaling $35.2 million, or $1.15 per share after tax, adjusted net income was $4.1 million, or $0.13 per fully diluted share. The company recorded the valuation allowance for book tax purposes against its deferred tax assets due to projected cumulative pre-tax GAAP losses for the three-year period ending in 2009.
Horizon Lines Reports Q3 Results
Horizon Lines, Inc. (NYSE:HRZ) reported results for its fiscal third quarter ended September 20, 2009. On a GAAP basis, net income totaled $8.4 million, or $0.27 per diluted share, on revenue of $308.0 million. This compares with net income of $11.1 million, or $0.37 per diluted share on revenue of $352.6 million for the same period a year ago. Adjusted third-quarter 2009 net income totaled $11.4 million, or $0.37per diluted share, after excluding antitrust-related legal expenses and vessel impairment charges totaling $3.0 million, or $0.10 per share after tax. Adjusted net income for the 2008 third quarter totaled $14.7 million, or $0.48 per diluted share, which excludes antitrust-related legal fees totaling $3.6 million, or $0.11 per share after tax.
Horizon Lines Announces Organization Changes
Charles G. Raymond, Chairman, President and Chief Executive Officer of Horizon Lines, Inc. said several organization changes, key executive promotions and a realignment of senior management responsibilities. Effective September 1, 2007, Horizon Lines, Inc. is structuring its transportation and logistics operations under two wholly owned subsidiaries, Horizon Lines, LLC, and Horizon Logistics, LLC. Horizon Lines, LLC will continue as the nation's leading Jones Act container shipping company, with a fleet of 21 U.S.-flag vessels and service routes linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico.
Horizon Lines Ends Perquisites for Execs
Horizon Lines, Inc. (NYSE: HRZ) announced that it is eliminating all perquisites for its four named executive officers, effective at the end of the year. The Compensation Committee of the Board of Directors approved the decision after a comprehensive review in conjunction with a company-wide effort to eliminate perquisites at all levels of the organization as part of a broader, ongoing cost-reduction initiative. "We believe the perquisite elimination for executive officers is consistent with emerging best practices in corporate governance," said Chuck Raymond, Chairman, President and Chief Executive Officer. The eliminated perquisites include…
Horizon Lines Reduces Debt in Q4
Horizon Lines, Inc. (NYSE:HRZ) announced that it reduced funded debt by $38.1m during the fourth quarter and completed its fiscal year with $28m less in funded debt than a year ago. The company achieved stronger-than-projected free cash flow during the fourth quarter ended December 20, 2009. Cash was deployed to voluntarily pay down $35.0 million on a revolving credit facility and $1.5m on a crane loan, as well as for a $1.6m scheduled term-loan amortization payment. The fourth-quarter voluntary payments followed voluntary payments of $10m in the third quarter and $5m in the second quarter. At December 20, 2009, funded debt totaled $542.5m, compared with $570.5 a year earlier.
Horizon Lines Q1 Financial Results
Horizon Lines, Inc. (NYSE:HRZ) reported results for its fiscal first quarter ended March 21, 2010. On a GAAP basis, the first-quarter net loss totaled $13.2 million, or $0.43 per share, on revenue of $286.1 million. This compares with a net loss of $10.0 million, or $0.33 per share on revenue of $272.4 million for the same period a year ago. The adjusted first-quarter 2010 net loss was $12.0 million, or $0.39 per share, after excluding charges totaling $1.2 million pre-tax, or $0.04 per share after tax adjustment, for antitrust-related legal expenses and for a voluntary separation program for certain union employees. The adjusted net loss for the 2009 first quarter totaled $4.7 million…