Bank stock sales help A&B

By Andrew Gomes
Advertiser Staff Writer

A large return on investments in Hawai'i's two largest banks enabled Alexander & Baldwin Inc. to post higher profits during what it said was a difficult 2001.

The Honolulu-based ocean transportation, real estate and agribusiness company earned $110.6 million last year, a 22 percent increase from 2000. Revenue was up by about $120 million, to $1.19 billion, compared with $1.07 billion in 2000.

A&B said its ocean transportation subsidiary Matson Navigation Co., real estate business A&B Properties Inc. and agribusiness activities all yielded reduced profits. However, profits were boosted by a $77.8 million after-tax gain from sales of stock in Pacific Century Financial Corp. and BancWest Corp.

Allen Doane, A&B president and chief executive officer, said he expects earnings from core operations to be lower for at least the first two, possibly three, quarters of this year, compared with last year, because of the weak economic environment.

At Matson, operating profit was $62.3 million, a 34 percent decrease from 2000. The decrease stemmed from a 3 percent drop in container volume and a 7 percent drop in automobile volume. Also affecting Matson results were higher-than-expected transitional costs from a Sand Island terminal improvement project.

At A&B Properties, operating profit was $52.1 million, down 4 percent from 2000. Property leasing profits were higher, but property sale profits were lower

In A&B's food products division, operating profits totaled $5.7 million, down 24 percent from 2000. The company took a $9.2 million after-tax charge for reducing the value of an investment in C&H Sugar Co. Inc.