A&B profits dip as Matson container volumes fall
Alexander & Baldwin Inc., parent of Matson Navigation, said it had second quarter profit of $29.6 million compared to $32 million in the same 2007 period.
Second quarter revenue was $463.9 million, compared with revenue of $426.9 million in the second quarter of 2007.
W. Allen Doane, chairman and chief executive officer of A&B, said the “ocean transportation segment earned over $37 million in operating profit for the quarter, representing a decrease of just $1.7 million from a year ago, despite volume declines in all of the trades we serve and an historic increase in our fuel cost.”
“Strong financial results at Matson Navigation are attributable to improvements in yields and cargo mix in all trades, which largely offset volume declines and higher terminal handling expenses,” he said. “Savings from cost containment initiatives, particularly the efficient deployment of vessels, played an important part in the results, nearly offsetting increases in vessel repair and dry dock expenses,” he added.
The company said it saw an 8 percent decline in both Hawaii and China container volumes, and a 3 percent decline in container volumes between the mainland and Guam.
Matson Integrated Logistics posted volume declines similar to the ocean transportation arm.
Doane said, “Matson Global Distribution Services gained considerable traction as it began to serve a major, multiyear client at our new Savannah, Ga., logistics facility and entered into a definitive agreement to acquire a leading regional, asset-light warehousing, value-added packaging and distribution company specializing in the ‘high-touch’ handling of domestic, import and export goods.”