Matson’s 2nd-quarter operating income down 37%

Matson’s 2nd-quarter operating income down 37%    Honolulu-based Alexander & Baldwin Inc., Friday reported that its U.S.-flag operator Matson Navigation’s second quarter operating profit dropped 37 percent to $24.4 million, from $38.7 million a year ago.
   Matson’s revenue for the quarter improved 10 percent to $243.3 million, compared to $221 million in the second quarter 2005.
   The operating income decrease was a result of “expense increases that more than offset revenue gains, primarily an increase in vessel operating and overhead expenses due to higher fuel costs and the China service startup, and increased terminal handling costs due to higher rates,” A&B reported.
   Matson’s Hawaii second quarter container volumes were flat at 44,600 units “reflecting primarily a reduction in eastbound volumes, including lower shipments of agricultural products and lower military-related household good movements.” Hawaii automobile volumes were down 22 percent to 33,800 units due “primarily to the impact of reduced auto manufacturer incentives for rental car agencies, which resulted in lower rental car turnover, as well as competitive pressures.” Matson’s Guam container volume declined 7 percent to 3,900 units. Volume for the carrier’s new China service was 7,500 units.
   For the year to date, Matson’s operating profit dropped 38 percent to $42.7 million, compared to $68.4 million after the first six months of 2005. Ocean transportation revenue in the first half was $462.9 million, up 8 percent from $427.2 million posted in the year-earlier period.