Posted on: Thursday, July 26, 2001

Maui Land & Pine's net income declines

Advertiser Staff

Maui Land & Pineapple Co. Inc. yesterday said lower earnings from its pineapple and commercial property segments contributed to a second-quarter drop in net income.

The company reported second-quarter net income of $265,000, or 4 cents a share, compared to $300,000, or 4 cents a share, for the same quarter a year ago. For the first half of the year, it reported net income of $1 million, or 15 cents a share, compared to $2.2 million, or 31 cents a share, the same time last year.

Revenue for the second quarter was up 27 percent, to $39.2 million. For the first half of the year, revenue was $77.95 million, up 19 percent.

The company's Kapalua Resort had an operating profit of $2.8 million for the second quarter, compared to $2 million the same quarter last year. The company said the improved results reflected income from lot sales at Pineapple Hill Estates and the closing of sales at the Coconut Grove on Kapalua Bay.

But the company said its pineapple operations had a second-quarter operating loss of $989,000 compared to an operating loss of $784,000 the same quarter last year. For the first half of the year, the operations had an operating loss of $2 million compared to an operating loss of $1.1 million for the first half of 2000.

The company said higher case sales volume and average sales prices drove revenue up in the segment, but that was offset by increased marketing, general and administrative expenses and higher per unit production costs.

The company said its commercial property segment reported operating losses of $404,000 and $378,000 for the second quarter and first half of 2001, respectively, compared to $84,000 and $122,000 for the same periods a year ago. The lower results were primarily due to lower results from Queen Kaahumanu Center.