earnings fall 38.2%
The drop was mostlyBy Russ Lynch
due to a $22.5 million
The stock of Pacific Century Financial Corp.fell 5.8 percent today after the banking company reported a 38.2 percent drop in third-quarter net profit.
The company, parent of Bank of Hawaii and other financial businesses, yesterday reported a net of $21.5 million, or 27 cents a share, down 38.2 percent from $34.8 million, or 43 cents a share, a year earlier. The drop was mostly due to a $22.5 million restructuring charge in the latest quarter related to the company's restructuring, the company said.
In September, Pacific Century announced its "New Era Redesign" program, which includes cutting 1,015 positions, or about 20 percent of its work force, through attrition, outsourcing, and up to 266 layoffs. The company said the restructuring, when completed at the end of next year, is expected to produce cost savings of $43 million a year.
In New York Stock Exchange trading today, Pacific Century shares fell $1.31 to close at $21.12.
By Sept. 30, Pacific Century had assets of $14.5 billion, down just under 1 percent from $14.6 billion on Sept. 30 last year. Deposits of $9.3 billion were down 1.1 percent from $9.4 billion and loans of $9.3 billion were up 2.2 percent from $9.1 billion.
Lawrence M. Johnson, Pacific Century chairman and chief executive officer, said there are positive signs of economic recovery in Hawaii.
He said economists are saying tourism growth, a modest increase in construction activity, and almost no inflation are all indicators of upward trends.