A&B’s 3rd-quarter profits soar 43%
Alexander & Baldwin Inc., parent company of Matson Navigation, reported a 43 percent surge in third quarter net income to $35.5 million, compared to $24.8 million in the same quarter last year.
A&B’s total third quarter revenue was up 19 percent to $451.8 million, from $381.2 million in the year prior quarter.
A&B said Matson’s operating profit increased 12 percent to $36.8 million from $33 million in the third quarter of 2004, while revenue improved 6 percent to $227.5 million from $215 million.
Matson’s increases were due to higher Hawaii container volume, improved yields and cargo mix, and increases in the fuel surcharge necessitated by higher fuel prices, A&B said. Total Hawaii container volume was 4 percent higher than the same quarter last year, while total Hawaii automobile volume was down 1 percent, A&B reported.
For the year to date, Matson’s operating profit jumped 27 percent to $105.2 million, compared to $83 million after the first nine months of 2004. Ocean transportation revenue after nine months was $654.7 million, up 6 percent from $619.6 million posted in the year-earlier period.
“Looking ahead, some of Matson’s Guam/China startup costs are now beginning to be felt on the P&L and infrastructure spending for the new service has commenced. Matson has been enjoying what might be characterized by ‘smooth seas.’ But we are mindful of the recent sharp hikes in energy costs and the widespread effects they will have on operating costs,” said Allen Doane, president and chief executive officer of A&B. “Those factors notwithstanding, 2005 should be an outstanding year for A&B.”
A&B’s 3rd-quarter profits soar 43%
