A&B’s 4th-quarter net income up 25%
Honolulu-based Alexander & Baldwin Inc., parent company of U.S.-flag operator Matson Navigation, reported Wednesday a 25.1 percent rise in fourth quarter net income to $23.4 million.
In the fourth quarter of 2004 A&B posted a net income of $18.7 million.
A&B’s consolidated fourth quarter revenue was up 1.5 percent to $398.5 million, from $392.5 million in the year prior quarter.
A&B said Matson’s fourth quarter operating profit dropped 10 percent to $22.8 million from $25.3 million in the fourth quarter of 2004, while revenue decreased 3 percent to $223.6 million from $230.5 million.
Matson’s decreases in the fourth quarter were largely a result of comparing a 13-week accounting period in 2005 with 14 weeks in 2004. A&B also cited lower volumes and rates, higher fuel costs, and startup expenses related to the new Guam-China service
Quarterly Hawaii container and automobile volumes were down 3 percent and 20 percent, respectively, while Matson’s Guam container volume improved 3 percent, A&B reported.
Matson Integrated Logistics’ operating income rose 39 percent to $4.3 million in the latest quarter, from $3.1 million a year earlier. A&B’s logistics arm’s revenue increased 10 percent to $120.4 million, from $109.8 million in the fourth quarter of 2004.
For the full year, A&B also reported a 25.1 percent jump in net income to $126 million, compared to $100.7 million in 2004. Revenue improved 8.1 percent to $1.60 billion from $1.48 billion.
For the full 12 months, Matson’s operating profit jumped 18 percent to $128 million, compared to $108.3 million in 2004. Ocean transportation revenue was $878.3 million, up 6 percent from $850.1 million posted in the previous year.
Full-year Hawaii container volumes were up 4 percent while Hawaii automobile volumes dropped 6 percent. Matson’s Guam container volume declined 3 percent in 2005, A&B said.
Operating income for 2005 at Matson Integrated Logistics’ soared 62 percent to $14.4 million, from $8.9 million. Revenue increased 15 percent to $4316 million, contrasted against $376.9 million in 2004.
“A&B’s successful earnings performance in 2005 makes it difficult — but all the more necessary — to remind investors that we still expect that the results in 2006 will be lower,” said Allen Doane, president and chief executive officer of A&B.
“Matson has completed preparations for the first sailing this week of its new China-Long Beach Express service that will replace the company’s alliance with APL, but no amount of preparation can offset the costs of starting the new China service and of shifting vessels previously used in the Guam service to Hawaii.”