MATSON’s 1ST-QUARTER OPERATING PROFIT PLUNGES

MATSONÆS 1ST-QUARTER OPERATING PROFIT PLUNGES    Matson Navigation Co., the container-shipping unit of Alexander & Baldwin Inc., said its first-quarter operating profit plunged 86 percent to $2.5 million.
   The Honolulu-based carrier, which serves the U.S./Hawaii and Guam trades, has implemented a 2.75-percent general rate increase and will raise its bunker fuel surcharge May 5.
   Matson blamed the lower results on lower cargo volumes due to post Sept. 11 economic effects and 'from competitive losses, principally due to service difficulties.'
   Operating costs were also higher, due to transitional effects from the terminal improvement project in Honolulu.
   Revenue was $192.7 million, compared to $196.6 million for the year-earlier period.
   Container volumes for the quarter were down 3 percent and automotive volumes fell 23 percent.
   Noting 'dramatic increases in fuel prices,' Matson said it will increase its fuel surcharges by 1.5 points, to 4.75 percent, in its Hawaii and Guam services, effective May 5.
   The carrier said the increase will 'recover only a partial amount of our fuel-related costs.' Matson had lowered its fuel surcharge to 3.25 percent, from 4.25 percent, in November.
   Matson implemented the 2.75-percent rate increase April 14, and reduced the number of vessels serving Hawaii from eight to seven in January to offset lower cargo demand.
   Auto shipments are expected to rebound as rental car fleets in Hawaii are renewed, and changes in Matson's stevedoring joint venture is being pursued. The company also anticipates improved conditions in the U.S./Puerto Rico trade, where Matson participates through an investment in Sea Star, which is attempting to acquire Navieras, a competitor in the trade.