HEI profits up 34 percent
By Frank Cho
Advertiser Staff Writer
Hawaiian Electric Industries Inc. yesterday said second-quarter profits rose more than 34 percent, reflecting increased income from its savings bank subsidiary and fewer losses from its overseas operations.
The parent company of Hawaiian Electric Co. Inc., American Savings Bank and other business operations mostly in Hawai'i, said net income for the period ended June 30 rose to $25.6 million, or 76 cents a share, from $19.1 million, or 59 cents, in the same year-earlier quarter.
"We had a good second quarter. Earnings were up compared with the same quarter last year due to an 8.6 percent increase in savings bank net income and contraction of our international operations," said Robert Clarke, HEI's chairman, president and chief executive officer, in a statement.
HEI's earnings easily beat analysts' average estimate of 70 cents a share. Its stock fell 2.3 percent yesterday to close at $37 a share before the earnings were released. The stock hit a 52-week high of $39.25 on July 11. Trading was lighter than average yesterday at 66,000 shares compared to a daily average of 100,000 shares.
Electric utility net income during the quarter was $22.7 million, down 5.4 percent from $24 million in the same year-ago quarter.
"Warmer weather boosted kilowatt-hour sales by 1.4 percent for the quarter despite visitor arrivals in April and May declining slight from 2000's record highs," Clarke said.
However, costs for buying more power from independent-power producers increased expenses during the quarter from the same period in 2000.
American Savings Bank's earnings continued to grow during the second quarter, but at a slower rate than in the past, as the company sold off higher-returning assets to reduce the risk in its portfolio. The bank reported net income of $10.2 million compared to $9.4 million in the same quarter last year.
"Although personnel and technology costs were higher compared to the same quarter last year, the bank was able to increase its second-quarter earnings by 8.6 percent due to higher net interest income and fee income," Clarke said.
The company's international power subsidiary, HEI Power Corp., reported a $900,000 operating loss for the quarter compared to a loss of $8.9 million in the same period a year ago.
