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HAWAII

Wahiawa rejects offer from nurses, talks end

Talks broke off between representatives of Wahiawa Hospital and the union representing its 65 nurses last night after the hospital rejected the nurses' latest offer.

A federal mediator shuttled between both sides for more than 12 hours yesterday in an attempt to get them back to the bargaining table. The nurses submitted a revised contract proposal to mangement at 9:30 p.m. yesterday and it was rejected by 10 p.m., according to the Hawaii Nurses Association.

No new talks are scheduled.

The nurses have called a strike for Monday if no agreement can be reached.

HMSA revises losses for 2002

Hawaii Medical Service Association said yesterday its 2002 net loss was $5 million, about 14 percent greater than originally reported, bringing the company's total loss to $40 million for the year.

HMSA Treasurer Steven Van Ribbink said the additional loss relates to a federal tax credit the company initially claimed. Under generally accepted accounting principles, the credit would have been allowed, Van Ribbink said. But with the company's switch to statutory accounting principles, required by the state Insurance Division when HMSA files for approval of its rates, the error was overlooked, he said.

"For SAP, there are certain tax benefits that can't be claimed that can be on GAAP," he said.

The $40 million loss is the largest in the history of the association, Van Ribbink said. In 2001, the company posted a profit of $3.4 million.

Earlier this month, the company asked the Insurance Division to approve an 11.5 percent rate increase for its 10,000 small business customers.

Aloha, American Air link e-tickets

Aloha Airlines and American Airlines have begun issuing electronic tickets for itineraries that involve both airlines. Aloha and American can issue the e-tickets at airport and ticket offices. Previously, a shift to a paper ticket was required when changing from one airline to the other. Examples of how the system can be used include a neighbor island-Honolulu flight on Aloha connecting with American Airlines flight to the mainland, or an American Airlines flight within the mainland connecting with an Aloha flight from the West Coast to Hawaii.

Ceatech loss doubles

Ceatech USA Inc., a shrimp producer on Kauai, said its losses doubled in its 2003 fiscal year after experiencing hatchery production problems.

The company, which has lost $10.7 million since its inception in January 1995, lost $3.6 million, or 44 cents a share, in the year ended Jan. 31, 2003, compared with a loss of $1.6 million, or 22 cents a share, the year prior. Sales, however, rose 9.5 percent to $2.8 million from $2.5 million in fiscal 2002.

Ceatech said its harvest schedule has returned to normal following production problems. The company said it has been able to restock all 40 of its growout ponds but that farm expansion is required to achieve positive cash flow.

The company also said it made a private offering of up to $3.5 million in its common stock last month to "accredited investors" and it had received $1 million in connection with the offering as of April 8. Ceatech said receiving the remaining $2.5 million is contingent upon it securing a funding commitment from a third party sufficient to construct and outfit at least 20 one-acre growout ponds.

California firm buys Maui water supplier

KAANAPALI, Maui >> A California business has bought a water company serving six resorts and eight condominium complexes at Kaanapali in west Maui. The Kaanapali Water Corp., which has about 500 customers, was bought by California Water Service Group yesterday.

California Water Service said customer rates will not increase and that workers have all received offers for continued employment, including area manager Jeff Eng, who will become general manager for the new subsidiary.

The California company, which has four other water companies, has established a fifth operating subsidiary, the Hawaii Water Service Co., to serve its Hawaii customers.

The purchase was approved by the Hawaii Public Utilities Commission on March 27.

MAINLAND

Exxon first quarter income triples

Exxon Mobil Corp.'s net profit more than tripled in the first quarter due to higher prices for crude oil and natural gas.

The world's largest publicly traded oil company earned $7.04 billion during the first three months of the year, equal to the combined annual earnings of PepsiCo Inc., Colgate-Palmolive Co. and Target Corp. -- or nearly equal to Iceland's gross domestic product.

Net income was $2.12 billion during the same period a year ago.

Revenue surged 47 percent to $63.78 billion. The infusion of cash enabled Exxon Mobil to raise its quarterly capital and exploration spending by 18 percent to $3.50 billion, boost its dividend by 8 percent and buy back $1.19 billion of its stock.

Excluding one-time items, Exxon Mobil earned $4.79 billion, or 71 cents per share on a diluted basis. That was one cent over Wall Street's expectations of 70 cents per share in the quarter ending March 31.

Oil prices soared early in the first quarter due to a petroleum industry strike in Venezuela, civil unrest in Nigeria and speculation on the impact of the war in Iraq.