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Maui Land net
falls 21% despite
higher revenues

By Tim Ruel
Star-Bulletin

Maui Land & Pineapple Co. said today it had second-quarter net income of $300,000, down 21 percent from $381,000 during the same period last year, despite a $550,000 increase in revenues.

Maui Land's revenues hit $30.92 million for the three months ending June 30, a 1.8 percent increase from $30.37 million in the second quarter of 1999.

But because of increased losses in its pineapple business, the company's per-share earnings fell to 4 cents from 5 cents.

Pineapple operations had an operating loss of $784,000, compared to an operating profit of $1.4 million during the second quarter of 1999. The company blamed highly competitive market conditions for pineapple products.

Meanwhile, Maui Land's Kapalua Resort recorded a $2 million profit for the second quarter, up 82 percent from $1.1 million the same time last year. Resort revenues rose 17 percent to $11.8 million from $10.1 million.

Also, the company's property segment reported an $84,000 operating loss for the second quarter, compared with a loss of $166,000 last year. Property revenues rose 18.5 percent to $1.22 million from $1.03 million. For the first six months of the year, the company's net income is up 12.5 percent to $2.25 million from $2 million in the first half of 1999.

America Online Inc. Chairman Steve Case owns more than 40 percent of the Kahului-based company. Case, who grew up in Honolulu and graduated from Punahou Schools, paid about $39 million for the stake in August.

Maui Land's stock, traded on the American Stock Exchange, fell 25 cents to to close at $22.75 today. The shares are up 31 percent 27 percent from a year ago.