UPDATE 1-Danaos posts Q4 loss hurt by rate swaps

Mon Mar 29, 2010 5:42pm EDT

* Q4 loss $0.30/shr vs EPS $0.44 last year

* adj profit from cont ops $0.27/shr

* Oper rev up 8 pct at $85.3 mln vs est $79.8 mln

* Shares fall 2 pct after the bell

March 29 (Reuters) - Greek container shipping company Danaos Corp (DAC.N) posted a fourth-quarter loss, weighed down by a $44.6 million loss on interest rate swap contracts.

"On the one hand, consumer demand fell sharply immediately after the third quarter of 2008 and continued to retreat for the most part of 2009, and on the other, the supply of shipping tonnage kept increasing with, deliveries of vessels ordered in previous years," Danaos said in a statement.

For the quarter, the company posted a loss of $16.2 million, or 30 cents a share, compared with a profit of $23.8 million, or 44 cents a share, in the year-ago quarter.

On an adjusted basis, the company reported a profit of 27 cents from continuing operations.

Operating revenue rose 8.4 percent to $85.3 million.

Analysts on average had expected the company to post a profit of 26 cents, excluding special items, on revenue of $79.8 million, according to Thomson Reuters I/B/E/S.

Loss on fair value of derivatives rose to $44.6 million from a loss of $1.2 million last year.

Shares of the company fell 2 percent to $4.50 after the bell. They closed at $4.6 Monday on the New York Stock Exchange. (Reporting by Krishna N. Das in Bangalore; Editing by Gopakumar Warrier)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.