Land, ag cut
results for A&B

But Matson Navigation
had 18.4 % higher profit

By Russ Lynch
Star-Bulletin

Lower property sales and reduced income from agribusiness activities in Hawaii brought Alexander & Baldwin Inc.'s third-quarter earnings down 5.4 percent compared to last year's third quarter.

A&B today reported a profit of $21.9 million, or 48 cents a share, for the three months ended Sept. 30, compared to a profit of $23.1 million, or 51 cents a share, in the year-earlier quarter.

Revenues for the latest quarter totaled $326 million, down 2.3 percent from $333.8 million in the third quarter of 1996.

A&B's biggest component, Matson Navigation Co., did well with an 18.4 percent increase in operating profit, to $24.4 million in the latest quarter compared to $20.6 million in the 1996 quarter.

The company's property leasing business was up slightly, with an operating profit of $6.1 million compared to $6 million a year earlier. The operating profit from property sales, however, dropped to $1.3 million from $8.7 million in the 1996 quarter. The difference came mostly from the sale of a seven-acre Maui property, occupied by a Kmart store, in the 1996 period. Sales in the 1997 quarter were lower-value properties.

A&B's food segment showed a 3 percent decline in operating profit, to $11.5 million from $11.8 million in the 1996 quarter.

Results were better at the company's California refinery, California and Hawaiian Sugar Co., but sugar growing results in Hawaii were down.

"The absence of a land sale as large as the 1996 Kmart transaction and lower sugar production at our plantation on Maui disadvantaged the year-to-year comparison for this quarter," said John C. Couch, chairman, president and chief executive officer.

"Nevertheless, the results were encouraging, with the Company's operations outside of Hawaii -- especially the Guam service, C&H and the mainland leased properties -- contributing more to earnings for the quarter and Matson's Hawaii service results improving significantly." he said.