Maui Land’s profit
rises on residential
property sales

Maui Land & Pineapple Co.'s earnings more than doubled in the fourth quarter with residential real estate sales making up for its struggling pineapple operations.

The company posted net income of $2.6 million, or 36 cents a share, compared with $1.2 million, or 17 cents a share, a year ago.

Revenue edged up 2.4 percent to $48.5 million from $47.4 million.

MLP began selling lots in Honolua Ridge in July and said yesterday that 17 lots had closed escrow through the end of last year. The fourth-quarter sales contributed $9.6 million in operating profit to the company's development segment.

For the year, MLP had a net loss of $383,000, or 5 cents a share, compared with $6 million, or 83 cents a share, a year ago. Net income in 2003 included the company's $1.9 million pre-tax gain from the sale of Napili Plaza, a $13.5 million pre-tax gain from the sale of Queen Kaahumanu Center and a $2.9 million pre-tax gain from the sale of Costa Rican assets.

Full-year revenue rose 1.4 percent to $153.4 million, with the Honolua Ridge lot sales contributing $12.4 million to operating profit.

The company's pineapple operations dragged down earnings with a $2.7 million loss last quarter compared with an operating profit of $2.1 million a year ago. For the year, pineapple operations widened to a loss of $11.3 million from a loss of $4.8 million in 2003.

Pineapple revenue fell 38.4 percent to $22.4 million in the quarter from $36.4 million a year earlier. The revenue last quarter included a $1.7 million payout from U.S. Customs compared with $5.4 million MLP received in the fourth quarter of 2003 due to the distribution of antidumping duties. Fourth-quarter 2003 revenue also included $3 million related to the settlement of lawsuits.

"Our resort and development segments are generally on track while our agricultural operations continue to struggle," said David Cole, chairman, president and chief executive of MLP. "In 2004, we invested heavily in future crops to smooth fruit delivery schedules, extend fresh fruit shelf life and dramatically improve quality."

MLP's resort segment narrowed its operating loss to $1.3 million from $1.7 million as Kapalua Resort's hotel and condominium occupancies were higher last quarter than a year ago and the resort's golf, merchandise and Kapalua Realty operations exceeded fourth-quarter 2003 results. The resort division's revenue rose 8.2 percent to $11.2 million from $10.4 million. But improved resort results were partially offset by lower lease revenues and lower results from the Villas rental operations.