The Honolulu-based ocean carrier recorded a net income of $34.1 million on revenues of $543.9 million for the third quarter of 2017 amid strong demand for its China and southbound Alaska services.
Ocean carrier Matson, Inc. reported a net income of $34.1 million for the third quarter of 2017, a 34 percent increase over the same 2016 period, according to the company’s most recent financial statements.
The Honolulu-based carrier’s diluted earnings per share stood at $0.79 for the quarter on consolidated revenues that grew 8.7 percent year-over-year to $543.9 million.
Year-to-date, Matson has recorded a net income of $65.1 million on revenues of $1.5 billion, up 6 percent from $61.4 million and 7.2 percent from $1.4 billion, respectively, in 2016.
“Matson achieved better-than-expected third quarter results due to stronger demand for our expedited China service, stronger southbound volume in Alaska, the timing of fuel surcharge collections, and higher lift volumes at SSAT,” said Matt Cox, Matson’s chairman and CEO. “These positive contributors were somewhat moderated by lower volume in Hawaii and continued competitive pressure in Guam.”
In Matson’s ocean transport sector, Hawaii container volumes fell 6.4 percent year-over-year in the third quarter due primarily to construction in the region, while Chinese container volumes grew 11.7 percent thanks to stronger demand for Matson’s expedited service and an additional sailing, the carrier said. In Guam, the company’s container volume in the third quarter slipped a year-over-year basis as a result of competitive losses to a U.S.-flag containership service that increased its service frequency to weekly in December 2016, said Matson. Container volumes in Alaska saw an 8.2 percent increase year-over-year, due to a better-than-expected seafood harvest that positively impacted southbound volumes and an additional northbound sailing.
Through the first nine months of the year, ocean transportation revenues increased 4.1 percent year-over-year compared to the same period in 2016. Matson attributed the increase to higher fuel surcharge revenue and higher average freight rates and container volumes in China.
The company’s SSA Terminals joint venture investment contributed $19.3 million during the first nine months of 2017, compared to a $9.2 million contribution in the same period in 2016, due to improved lift volume. Matson also partnered with SSA Terminals at Port of Tacoma for stevedoring and terminal services earlier this year.
In Maton’s logistics sector, operating income included a full quarter of freight forwarding operating results from its recently acquired Span Alaska business and the company expects logistics operating income for the full year to be approximately $20 million, up $11.9 million in 2016.
“Stronger performance year-to-date in China, Alaska, and SSAT have more than offset the negative trends this year in Guam and more recently with lower construction-related cargo in Hawaii,” said Cox. “Overall, we expect our businesses to continue to perform well during the fourth quarter, and due to our stronger-than-expected third quarter results we are raising our outlook for full year EBITDA to modestly exceed last year’s EBITDA.”
Matson earnings jump 34% in Q3 2017
