Maui Land & Pineapple announced an executive shakeup yesterday following the release of its third-quarter earnings, which showed an $8.7 million loss.

David C. Cole, chairman, president and chief executive of MLP, will step down at the beginning of the year; however, he will continue to serve as a company director and as its representative on the boards of Hawaii BioEnergy and Hawaii Superferry.

The company, whose operations include pineapple production, ownership of the Kapalua Resort and land development, also announced that Warren Haruki will become board chairman effective Jan. 1 and that MLP's current chief operating officer and executive vice president, Robert Webber, will succeed Cole.

“;Our company has weathered several significant challenges during the last several months and I believe our leadership team has been strengthened through this experience,”; said Cole, who was tapped to lead the company in 2003.

In July, the struggling company attempted to balance rising energy and operating costs by laying off 274 employees, the largest Maui layoff in recent memory. In late October, MLP announced the bankruptcy of the lead lender for The Ritz- Carlton Club & Residences at Kapalua Bay.

Cole said yesterday that a reduction in real estate sales, the cessation of its solid-pack pineapple products and visitor declines contributed to significant third-quarter losses for MLP and that the company anticipates further market contraction. However, the company closed a $40 million convertible debt financing during the quarter and took significant steps to reduce costs and preserve cash, he said.

“;I am confident that ML&P will emerge from this challenging period a stronger and more resilient company,”; Cole said.

Still, the Kahului-based company lost $8.7 million, or $1.09 a share, for the third quarter, compared with a net loss of $155,000, or 2 cents a share, in 2007. The company posted revenue of $19.1 million compared with $28.5 million in 2007.

“;Results reflect deteriorating market conditions in the Hawaii real estate and hospitality segments, including $2.5 million in severance costs and a $4 million increase in reserves for potential defaults on closings,”; Cole said. “;(The Ritz- Carlton Club & Residences at Kapalua Bay), a project that is continuing despite the bankruptcy of its lead lender, recorded $11 million of sales in the third quarter.”;

Though the leadership change was just announced, Webber said that it had been pending for some time. In anticipation of his growing role, Webber had been progressively taking on more responsibility, he said.

“;I was really brought in with this in mind,”; he said. “;We have a good solid management team in place and had made a lot of changes recently so David felt that it was the right time to take this step.”;

Webber, who joined MLP in May of 2006 as chief financial officer and senior vice president of business development, has been overseeing day-to-day operations at the company since he was promoted in March.

Before joining MLP, Webber served as president and chief financial officer of a publicly-traded technology services company headquartered in California, where he led growth initiatives and a turnaround of the business, increasing revenue by more than 50 percent to $75 million annually. He holds an MBA from the Harvard Graduate School of Business Administration and has held top management positions at commercial real estate, management consulting and technology companies.

Through MLP will face significant challenges going forward, Webber said that the company is better positioned than many to survive the downturn.

“;We've removed layers of management and we've secured some capital,”; he said. “;Maui's been pretty hard hit, but Kapalua has done well relative to other areas of the island.”;

Having been on the MLP board for the past three years, Haruki said he is aware of the financial and operational challenges facing MLP.

Haruki, who is currently president and CEO of Kauai-based Grove Farm Company Inc., is the former head of GTE Hawaiian Tel — Verizon Hawaii. He is also a trustee for the Parker Ranch Foundation Trust, and serves on the boards for Pacific Guardian Life Insurance Co. and First Hawaiian Bank.