Matson 1st quarter operating profit slides 15%
Honolulu-based Alexander & Baldwin Inc. on Wednesday reported that first quarter operating profit for its U.S.-flag operator Matson Navigation declined 15 percent due to a “more challenging economic climate in Hawaii and an increase of 60 percent in our average fuel cost from a year ago.”
Matson’s operating profit for the quarter was $15.9 million, down from $18.8 million in the same period last year. Ocean transport revenue for the first three months of 2008 improved 5 percent to $243 million, compared to $231.6 million at the start of 2007.
Container volume for Hawaii was down 7 percent to 37,900 units, while automobile volume there improved 12 percent to 25,600 units. Matson’s Guam container volume was flat at 3,400 units as was the carrier’s China traffic at 11,700 containers.
“Lower Hawaii volume was offset, to a large degree, by improvements in yields and cargo mix, and by savings from efficient fleet deployment and other cost reduction initiatives. The China service continued to grow, with full ships and trade lane profitability expanding on stronger yields, better cargo mix and improved equipment control. We expect to realize gains in our annual contract rates in the next few months. In Guam, higher terminal handling and outside transportation costs impacted trade lane margins for the quarter, but we expect modest volume growth in the balance of the year,” A&B said
Matson 1st quarter operating profit slides 15%
