Matson’s 3rd quarter operating profit down 7%

Matson’s 3rd quarter operating profit down 7%    Honolulu-based Alexander & Baldwin Inc. today reported that its U.S.-flag operator Matson Navigation’s third quarter operating profit dropped 7 percent to $34.2 million, from $36.8 million last year.
   “This reduction is explained by expense increases that more than offset revenue gains, primarily increases in direct and indirect fuel expenses, equipment control and leasing expenses, and increased terminal handling costs,” A&B said.
   Matson’s revenue improved 7 percent to $243.2 million, compared to $227.5 million in the third quarter 2005.
   “This increase was due to the establishment of the China service in early 2006, increases in fuel surcharge revenues, and improved yields and cargo mix, partially offset by the loss of charter revenue due to the expiration of the APL Alliance and lower volumes in the Hawaii and Guam services,” A&B explained.
   Matson’s quarterly container volumes for Hawaii were down 2 percent to 44,600 units. Hawaii automobile volumes decreased 15 percent to 27,100 units.
   Matson’s Guam container volume declined 14 percent to 3,7900 units. Volume for the carrier’s new China service reached 10,200 units.
   For the year to date, Matson’s operating profit dropped 27 percent to $76.9 million after a revenue gain of 8 percent to $706.1 million.
   In separate matter, A&B’s board of directors have authorized the repurchase of up to 2 million of its common shares in the open market. The new authorization will expire on Dec. 31, 2008.