Alexander & Baldwin Inc. ended a tough 2009 with a bit of recovery in the fourth quarter.

The company's fourth-quarter net income was $20.1 million, down 16 percent from $23.9 million in the year-earlier period. However, the latest results were the best quarterly performance of the year for the Honolulu-based ocean transportation, real estate and agricultural business.

For all of 2009, net income was $44.2 million, or $1.08 a share, a 66.6 percent decrease from $132.4 million, or $3.19 a share, in 2008.

Executives expressed optimism for the year ahead.

“;While some of 2009's economic challenges will persist throughout 2010, the company is much better positioned to create near-term earnings growth and long-term value in a more stabilized environment,”; said Stan Kuriyama, A&B president and chief executive officer.

The company's current emphasis is on Hawaii real estate, he said. Real estate sales revenue in the fourth quarter of 2009 was $64.2 million, an 18 percent increase from $54.4 million a year earlier. This was boosted by the company's fourth-quarter sales of the Pacific Guardian Tower in Honolulu and the Village at Indian Wells retail center in Indian Wells, Calif.

For all of 2009, real estate sales revenues were $125.6 million, down 64 percent from $350.2 million in 2008.

Leasing revenue in 2009 was $103.2 million, 4 percent lower than 2008's revenue of $107.8 million. A&B attributed this to lower mainland occupancies and rental fees.

“;These declines more than offset the company's strong performance in improved property sales,”; Kuriyama said, adding that real estate leasing “;will continue to generate significant cash net operating income.”;

Kuriyama pointed to last month's sale of the Mililani Shopping Center for $50.3 million, about $20 million more than its price in 2002. “;Demand for quality properties remains intact,”; he said.

A&B subsidiary Matson Navigation Co. posted a 2 percent revenue decline in the fourth quarter, $234.8 million compared with $239.5 million a year earlier.

This was due to lower yields in the China trade, lower fuel surcharges and lower container volumes for Hawaii, the company said. However, Matson also saw higher China and Guam volumes, and higher auto shipments for Hawaii.

Matson, the state's largest ocean shipper, said container volume for the isles continues to be affected by the economic downturn, but the rate of decline slowed in the fourth quarter.

Operating profit dropped 36 percent in the fourth quarter, to $13.5 million from $21.1 million a year earlier, largely due to a rudder failure on one of the company's vessels.

Repair expenses for a ship and adding a temporary vessel took an estimated $6.3 million toll on Matson's operating profit. The ship is now back in operation.

For A&B's sugar business, fourth-quarter revenues dropped to $22.2 million from $28.1 million, a 21 percent decline due to lower sugar and power revenues. The drop was offset by higher revenues for specialty sugar and coffee, executives said.

Sugar production decreased 22 percent in the fourth quarter, due to an earlier finish of the scheduled harvest. A&B has recently committed to continue its sugar operations at least through this year.