Matson triples its operating income

Matson triples its operating income    Stronger revenue, higher volumes, an exceptional pension settlement gain and the non-recurrence of port labor disputes led Matson Navigation to report a threefold increase in its operating income for the fourth quarter, to $32.4 million, from $9.2 million in the corresponding quarter of 2002.
   Revenue rose 14 percent to $199.3 million in the fourth quarter of 2003, as the number of containers on Matson’s Hawaii services increased 15 percent, to 42,200, and automobile traffic with Hawaii soared 29 percent, to 36,200.
   Commenting on the profit recovery at Matson Navigation, its parent company Alexander & Baldwin said that a Matson subsidiary joined two other marine terminal operators to form a multi-employer pension plan in December 2003.
   “The conversion of benefit obligations and associated assets from single-employer plans to the multi-employer pension resulted in a one-time settlement gain of $16.7 million, which benefited operating profit in the quarter,” A&B said. “Excluding this one-time event, the quarter’s results were marked by a return to a more normal level of profitability in contrast to the labor disruptions that depressed results in the fourth quarter of 2002.”
   Also contributing to the improvement were higher freight and automobile volumes in the Hawaii service and rate actions taken during 2003.
   Matson Integrated Logistics doubled its operating income to $1.4 million in the latest quarter, from $700,000 a year earlier. The logistics arm’s revenue rose 31 percent to $68.5 million, from $52.4 million in the fourth quarter of 2002.
   “Record revenue for Matson Integrated Logistics, Inc. in the fourth quarter of 2003 was due mainly to greater customer volume in all categories: domestic, international and highway activity,” Alexander & Baldwin said.
   “The 2003 fourth quarter rounded out a good year for A&B, with especially strong performance at both Matson and A&B Properties, the two largest components of the company,” said Allen Doane, president and chief executive officer of Alexander & Baldwin. The Alexander & Baldwin group reported a net income of $18.8 million in the fourth quarter, up from $17.4 million a year before, as profits from its sugar production activities declined.
   For the year, the combined revenue from ocean transportation and logistics at Matson exceeded $1 billion for the first time in the company’s history.
   Matson Navigation’s revenue rose 13 percent to $776.3 million last year, from $686.9 million in 2002. Operating profit at the ocean carrier jumped to $92.8 million in 2003, from $42.4 million in the previous year.
   Revenue at Matson Integrated Logistics increased 22 percent in 2003, to $237.7 million, as its operating profit climbed 52 percent, to $4.7 million.
   In December, Matson Integrated Logistics acquired TransAmerica Transportation Services, Inc., a third-party logistics company.
   In a separate development, Alexander & Baldwin promoted Christopher J. Benjamin to vice president and chief financial officer. He will succeed James S. Andrasick, who has been named president and chief executive officer of Matson Navigation.
   Benjamin joined Alexander & Baldwin in August 2001 as director, corporate development and planning and was promoted, in April 2003, to vice president, corporate development and planning.