A&B’s second quarter profits down 2%

A&B’s second quarter profits down 2%    Alexander & Baldwin Inc., parent company of Matson Navigation, said the “timing of real estate sales,” meant it suffered a 2 percent drop in its net income in the second quarter, to $29.4 million, compared to $30.1 million in the same quarter last year.
   A&B said Matson’s operating profit increased 23 percent to $38.7 million from $31.4 million in the second quarter of 2004.
   Matson’s revenue was up 6 percent to $221 million from $208 million. A&B said the increases were due to higher Hawaii container volume, improved yields and cargo mix, and increases in the fuel surcharge necessitated by higher fuel prices. Total Hawaii container volume was 10 percent higher than the second quarter of 2004, while total Hawaii automobile volume was 4 percent higher, A&B said.
   In the first half of the year, Matson’s operating profit jumped 37 percent to $68.4 million, compared to $50 million after the first six months of 2004.
   Ocean transportation revenue in the first half was $427.2 million, up 6 percent from $404.6 million posted in the year-earlier period.
   “The Hawaii economy remains vibrant, with little change expected in the next six to 12 months,” said Allen Doane, A&B’s president and chief executive officer. “The outlook for 2005 is excellent, but I would be somewhat cautious about 2006, as the Guam/China service is initiated, and economic momentum and real estate may shift into a lower gear.”