Matson’s operating profit up 13% in 3rd quarter

Matson’s operating profit up 13% in 3rd quarter

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Alexander & Baldwin Inc. reported a 13 percent gain in third quarter operating profit at its U.S.-flag carrier Matson Navigation to $38.6 million from $34.2 million in the same quarter last year.
   “A&B performed well in the third quarter, with A&B Properties and Matson Navigation delivering strong results. The impressive result for us comes despite gathering economic headwinds, as our transportation and real estate franchises provide excellent earnings stability and growth prospects alike,” said Allen Doane, chairman and chief executive officer of A&B.
   The Honolulu-based company said its ocean transport unit’s improved performance “reflects the continuing positive impact of Matson’s China service and the emerging growth of our Guam carriage.”
   “Our China service is running full, we are realizing the benefits of nearly double-digit rate increases effected in May, and we are defining our brand with international shippers with every on-time arrival.”
   Matson’s quarterly revenue improved 7 percent to $259.9 million, compared to $243.2 million in the third quarter 2006.
   Container volume for Hawaii was down 4 percent in the third quarter to 42,900 units while Hawaii automobile volume increased 14 percent to 30,800 units. Matson’s Guam box volume rose 9 percent to 3,600 units. Volume for the carrier’s transpacific China service increased 23 percent from 10,200 to 12,500 containers.
   “In Guam, the buildup to the coming military presence is still ahead of us, but volume increases are anticipated, even in this early stage. In Hawaii, we continue to focus on cost containment initiatives to offset marginally lower volume and higher vessel overhead. For the full year, the substantial gains achieved in the first three quarters are expected to countervail moderately lower fourth quarter earnings and should result in very strong full year comparisons,” A&B said.
   After nine months, Matson’s operating profit was up 25 percent to $96.5 million while its revenue gained 5 percent to $744.6 million.