Matson’s profit up for 4th quarter, down for year

MatsonÆs profit up for 4th quarter, down for year Honolulu-based Alexander & Baldwin Inc. today reported that its U.S.-flag operator Matson Navigation's fourth quarter operating profit jumped 26 percent to $28.7 million, from $22.8 million in the comparable period in 2005.
   'This increase is explained primarily by gains from the China service and improved yields in the Hawaii service, which were offset by the loss of charter profits due to the expiration of the APL alliance, lower Hawaii volume, increases in fuel consumption, equipment control and leasing expenses, and increased terminal handling costs,' A&B said.
   Matson's revenue in the quarter improved 7 percent to $239.7 million, compared to $223.6 million in the fourth quarter 2005.
   Container volumes for Hawaii were down 5 percent to 42,200 units while Hawaii automobile volumes decreased 30 percent to 26,000 units. Matson's Guam container volume slipped 10 percent to 3,700 units. Volume for the carrier's new transpacific China service, started in February, reached 13,000 units.
   For the year, Matson's operating profit was down 18 percent to $105.6 million despite a revenue gain of 8 percent to $945.8 million.
   'This reduction is explained primarily by expense increases that more than offset higher revenues. The primary expense increases include higher direct and indirect fuel costs and higher terminal handling and equipment costs,' A&B said.
   After 12 months, the carrier’s volumes were down in all of its established trades — Hawaii containers, down 1 percent to 173,200 units; Hawaii automobiles, down 20 percent to 118,700 units; and Guam containers, down 9 percent to 15,100 units. Volume for the China service totaled 32,700 units.