Maui Land & Pineapple loss widens to $3.5M

Maui Land & Pineapple Co., which announced in April it was shutting down its canned pineapple operations, posted a wider second-quarter loss due to charges associated with the restructuring.

The company said yesterday it had a net loss of $3.5 million, or 44 cents a share, compared with a loss of $2.6 million, or 36 cents a share, a year earlier.

Revenue rose 15.2 percent to $38.7 million from $33.6 million.

Maui Land & Pineapple Co. said yesterday it posted a wider loss in the second quarter as it took charges associated with the shutdown of its canned pineapple operations.

The company, which announced the closure in April, said its restructuring resulted in a net loss of $3.5 million, or 44 cents a share, compared with a loss of $2.6 million, or 36 cents a share, a year earlier. Revenue rose 15.2 percent to $38.7 million from $33.6 million.

MLP said it incurred losses on the disposition of equipment, material and supplies; employee severance charges; supply contract losses; and adjustments to cost of sales as fixed costs were distributed over lower projected sales volume.

"Maui Pineapple Co.'s exit from the canned pineapple business dominated results," said David Cole, chairman, president and chief executive of MLP. "In addition to severance and pension charges, restructuring costs included adjustments to standard costing and purchase supply agreements. We anticipate additional charges related to this action through the remainder of the year."

MLP's pineapple operations had a loss of $10.6 million compared with an operating loss of $3.4 million a year earlier. Revenue for the unit, which is now known as the agriculture segment, fell 7.8 percent to $13.2 million from $14.3 million.

The company said it still plans to continue processing pineapple juice, and also will extend its fresh fruit line to include products for institutional accounts.

MLP's community development segment's operating income climbed more than elevenfold to $8.1 million from $708,000 due to sales of lots at Honolua Ridge Phase II, the sale of a non-core land parcel, and income from Kapalua Bay Holdings LLC. Revenue for the unit more than doubled to $16.1 million from $7.5 million.

The company's resort segment widened its operating loss to $2.8 million from $1.9 million while revenue dropped 22.1 percent to $8.9 million from $11.4 million. MLP attributed the shortfall to the closure of the Village Course at the end of February and a reduction in retail space.