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HAWAII
Matson boosts fuel surcharge
Matson Navigation Co. said it will raise its fuel surcharge to 7.5 percent on March 3, to help cover price increases caused by the threat of war with Iraq. The surcharge, which affects Guam service as well as mainland-Hawaii freight, has been at 6 percent since October. Matson had cut its surcharge to 3.25 percent in November 2001, when fuel costs dipped, but began moving it back up in May 2002, initially to 4.75 percent.Matson said it burns about 1.8 million barrels of fuel a year and that means annual operating costs go up by $1.8 million every time fuel oil goes up $1. Last year, bunker fuel went from $17 a barrel to $30. The cost has since risen to nearly $40 a barrel, Matson said.
The company, the major subsidiary of Alexander & Baldwin Inc., said a surcharge of more than 7.5 percent would be justified, but it expects fuel prices to stabilize.
Ilikai, Local 5 reach new deal
The Renaissance Ilikai Waikiki Hotel and 320 members of the Hotel Employees and Restaurant Employees Local 5 reached a tentative contract agreement yesterday, the union said.Negotiators ironed out the final sticking point, improvements to the retirement plan, in a three-and-a-half hour session yesterday evening, said Jason Ward, Local 5 research analyst. The changes reflect those made in contracts the union reached with other hotels, he said.
Other portions of the contract had already been implemented, Ward said, after the union reached agreement last year with several large Waikiki hotels.
"The workers had already received wage increases," he said.
Union members are scheduled to vote Tuesday on the contract, which expires in 2006. The vote will run most of the day at the Ala Moana Hotel. The ratification vote replaces a strike vote that had been scheduled for that day.
The 783-room Ilikai is managed by Interstate Hotels & Resorts Inc., based in Washington, D.C., which operates more than 450 hospitality properties worldwide.
The union has now reached agreements with seven of eight hotels in its citywide campaign. The remaining property is the Ala Moana Hotel. Talks there are ongoing, Ward said, but none are currently scheduled.
Boyd Gaming profits dip in quarter
Casino operator Boyd Gaming Corp., which conducts travel packages from Hawaii to Las Vegas, posted a slimmer fourth-quarter profit than a year ago and said its Atlantic City Borgata casino was on track to open in the summer.Boyd reported net income of $3.88 million, or 6 cents a share, compared with $6.37 million, or 10 cents a share, a year earlier.
Adjusted earnings, which excludes preopening expenses and charges related to early debt retirement, were 24 cents a share, compared with 15 cents a share a year earlier. Analysts polled by First Call on average had expected 25 cents.
Consolidated net revenue rose to $306.1 million in the quarter from $267.2 million a year earlier. Total property earnings before interest, taxation, depreciation and amortization rose to $65.6 million in the quarter from $57.1 million a year earlier, Boyd said.
The Las Vegas-based company also said its joint venture partner, MGM Mirage, had agreed to changes that could grow the budget on the Borgata casino to $1.06 billion from $1.04 billion.
Amcon declares 3-cent dividend
Amcon Distributing Co., the parent of Hawaiian Natural Water Co., has declared a quarterly dividend of 3 cents a share. The payout will be distributed March 21 to shareholders of record as of Feb. 28. Amcon has kept its dividend at 3 cents for the past 13 quarters.Hawaiian Natural Water, which has a bottling plant on the Big Island, was purchased by Omaha, Neb.-based Amcon in December 2001.
AAA says gas prices near gouging
The recent spike in gasoline prices isn't justified and is getting "uncomfortably close" to gouging, a AAA spokesman said yesterday.In Hawaii, the average price of a regular gallon yesterday was $1.863, an increase of 18 cents per gallon from a year ago, when the average price was $1.685.
ELSEWHERE
Economists predict post-war rebound
WASHINGTON >> The U.S. economy is poised to grow faster in the second half of this year, assuming the conflict with Iraq is over and at least part of President Bush's new tax cuts becomes law, according to a group of prominent business economists.The National Association for Business Economics actually lowered its growth forecast for all of 2003, reflecting that it expects a slightly weaker first half of the year given the impact the possibility of war with Iraq has had on business confidence.
"Rising tensions in the Middle East are coloring business decisions and hampering U.S. economic growth," said NABE President Tim O'Neill.
The new NABE quarterly outlook, prepared by 37 top forecasters who are members of the business group, predicted the gross domestic product, the country's total economic output, would rise by 2.7 percent this year.
Japan posts surprising economic growth
TOKYO >> Japan's economy chalked up growth of 0.5 percent in the last three months of 2002, defying widespread expectations of a contraction thanks to healthy exports and better than expected demand at home.But the pace of growth slowed, and doubts remained about how much longer Japan's now year-long recovery would last, given deepening deflation and looming war.
The government said today that gross domestic product in the world's second-largest economy expanded by 0.5 percent in real terms in October-December from the previous quarter.
This beat a consensus Reuters poll forecast of a 0.3 percent contraction, but it was weaker than the 0.7 percent rise in the previous quarter and 1.3 percent gain in April-June.
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