Matson, real estate boost A&B's profit
The Honolulu-based company's earnings jumped 26 percent last year to $126 million
Buoyed by strong performances from its shipping and agriculture divisions and a near-doubling of revenue from sales of real estate, Alexander & Baldwin Inc. yesterday reported a banner year in 2005.
Annual earnings increased 26 percent to $126 million, or $2.86 per share, from $100 million, or $2.33 per share, in 2004.
That mirrored earnings for the fourth quarter of 2005, when net income rose 25 percent to $23.4 million, or 53 cents per share, from $18.7 million, or 42 cents per share, during the same quarter last year. Revenue in the fourth quarter of 2005 was $398.5 million, up from $392.5 in the fourth quarter of 2004.
"2005 was a benchmark year," said Allen Doane, A&B's president and chief executive officer. "The transportation segments achieved a 22 percent year-over-year increase in operating profit and real estate's total operating profit rose 20 percent.
"Even with a subpar harvest, food products operating profit doubled, thanks to a one-time federal payment and increased power sales," Doane said.
A&B subsidiary Matson Navigation Co. reported lower performance from its ocean transportation business during the fourth quarter, as operating profit declined 10 percent to $22.8 million from $25.3 million. But the company attributed this in part to a 13-week accounting period in 2005 versus a 14-week period last year. And the division's annual operating profit of $128 million was 18 percent higher than the $108 million it chalked up in 2004.
But that growth was dwarfed by A&B's real estate unit.
Riding an annual sales revenue increase of 81 percent, to $149 million from approximately $82 million, the company posted operating profit on real estate sales of $44.1 million, which was 27 percent higher than the $34.6 million reported in 2004.
