Advertisement - Click to support our sponsors.

Matson helps
boost A&B
profits 22%

The growth comes despite
a doubling of fuel costs

By Russ Lynch
Star-Bulletin

Alexander & Baldwin Inc. today reported a 21.6 percent increase in its second-quarter profit, showing a net of $28.2 million compared to a net of $23.2 million in the second quarter of 1999.

Per-share income was up 28 percent at 69 cents a share in the latest period compared with 54 cents a share in the 1999 quarter, with fewer shares outstanding this year.

The company's shares closed up $1.31 at $24.94 on the Nasdaq stock market on a volume of 72,200 shares.

A&B said its profit gain came both from its biggest subsidiary, Matson Navigation Co., and from its real estate business, while agriculture had negative results.

"Matson had a solid gain over its prior-year performance despite a significant increase in fuel prices," said W. Allen Doane, A&B president and chief executive officer. "Our real estate business benefited from a large property sale in the second quarter, as well as double-digit growth in property-leasing income," Doane said.

A&B sold a 13-acre parcel in Kahului, Maui, in June for $18.2 million.

"As we had expected, the negatives in the quarter were low sugar prices and a continuing drought in the State of Hawaii which hurt food-products results," Doane said.

A&B had second-quarter revenues of $276.4 million, up 4.8 percent from $263.8 million in the second quarter of last year.

Matson revenues were up 9 percent at $204.7 million for the latest quarter, compared to $187.8 million in the 1999 quarter.

Matson showed an operating profit of $27.9 million in the second quarter of this year, up 10.3 percent from $25.3 million in the 1999 quarter.

Property sales revenues were $25 million in the latest quarter, down 8.1 percent from $27.2 million in the year-earlier period, while property sales operating profits came to $18.9 million, up 90.9 percent from a year-earlier $9.9 million.

Property leasing produced revenues of $12.4 million, up 14.8 percent from $10.8 million, and an operating profit of $7.6 million, up 18.8 percent from $6.4 million.

A&B's food-products business, mostly sugar, had operating revenues of $33.5 million in the latest quarter, down 10.2 percent from $37.3 million in the year-earlier period. Food products had an operating loss of $2.1 million in this year's second quarter, compared to an operating profit of $2 million in the 1999 quarter.

A&B's total consolidated operating profit in the latest quarter was $53.1 million, up $8.8 million, or 20 percent, from $44.4 million in the second quarter of last year.