Maui Pine turns
a profit in quarter

Maui Land & Pineapple Co. said yesterday its second-quarter profit increased to $6.5 million after a year-earlier loss, with a boost from two Upcountry Maui land sales bringing in $14.5 million.

Despite another operating loss in its pineapple division, Maui Pine rode its community development unit to a robust quarter after selling approximately 25 acres of land and improvements to the Hui No'eau Visual Arts Center, and about 129 acres to unidentified purchasers.

MLP's earned 90 cents per share for the quarter, compared with a loss of 33 cents per share a year earlier, when the company lost $2.4 million.

Revenue jumped 72 percent to $51.2 million from $29.7 million.

"We continue to reinvest our gains to improve our resort, development and agricultural operations," said David Cole, chairman, and chief executive of MLP.

"Our pineapple segment hit performance targets as we work to resize the business to address specialty fruit markets."

Cole noted, though, that the pineapple operations continue to be affected by additional depreciation charges linked to the planned replacement of plant facilities next year.

The community development segment had an operating profit of $15.3 million compared with $1 million a year earlier, largely due to the two land sales, which resulted in pre-tax gains of $10.5 million. The division's revenue soared to $26.2 million from just under $3 million. The division also received $9.9 million in revenue from the sale of lots at the Honolua Ridge residential subdivision.

Although Maui Pine's pineapple unit had a $2.6 million operating loss, it narrowed its deficit from a loss of $2.8 million a year earlier. Pineapple revenue slipped 3.6 percent to $16.3 million from $16.9 million and reflect a reduction in canned sales volume following the company's decision to discontinue serving some retail segments.

MLP's resort segment widened its operating loss in the quarter to $2.3 million from $1.4 million a year earlier as revenue fell 12.3 percent to $8.7 million from $9.9 million. The company said the closure of the Plantation Golf Course on April 1 for extensive greens and fairway bunker renovations was the largest contributor to the lower revenue and increased operating losses.