Freight biz
lifts net at A&B

An insurance settlement
helps boost the firm's income
nearly threefold

By Russ Lynch
Star-Bulletin

Increased ocean freight business at its Matson Navigation Co. subsidiary boosted first-quarter earnings at Alexander & Baldwin Inc.

The company today reported a net income of $21.2 million, or 47 cents a share, for the three months ended March 31, nearly three times the $7.2 million, or 16 cents a share, reported for the first quarter of 1996.

Both periods had one-time special profits that added to the net, but A&B's ocean transportation business had an 18 percent profit increase from operations alone.

Its property leasing operating profit was up 5 percent and its sugar business turned from a loss to a profit. A&B's total revenues were up 14.4 percent at $296.3 million, from $259 million in the 1996 quarter.

"Although the lackluster Hawaii economy still presents an enormous challenge, progress is being made in all our businesses," said John C. Couch, board chairman, president and chief executive.

One-time items that distorted the results were a $12.4 million net gain at Matson in the latest quarter from the settlement of an insurance dispute over 1989 earthquake damage to Matson's Oakland terminal and ship charter income in the 1996 quarter.

The insurance settlement brought Matson a $20 million operating profit, after expenses. The 1996 period had a $5.6 million operating profit from chartering vessels to APL Ltd.

Not counting those items, Matson had an 18 percent increase in operating profit. Including them, Matson's operating profit nearly doubled from $17.6 million in the 1996 quarter to $34 million in this year's period.

This year's quarter had three full months of Guam service, compared with eight weeks in the 1996 quarter. Hawaii cargo volume dipped 4 percent but auto shipments increased 12 percent.