A&B profit down 46 percent from one year ago
By Andrew Gomes
Advertiser Staff Writer
Alexander & Baldwin Inc. profits were down in the second quarter, but the company said it saw improving segments of Hawai'i's economy reflected in higher container volume on its ocean cargo transportation subsidiary.
The Honolulu-based diversified transportation, real estate and food products company yesterday said it earned $13.2 million for the quarter, down 46 percent from $24.5 million in the same quarter a year ago.
However, last year's second-quarter results included a one-time gain of $9.4 million from the sale of Bank of Hawaii stock. Excluding that, A&B's profit for the recent quarter would have been down 13 percent.
On a per-share basis, A&B earned 32 cents for the quarter, compared with 61 cents in the year-ago quarter that included a 23-cent gain from the bank stock sale.
Revenue for the same comparable quarters was down 5 percent to $279 million, from $293 million.
A&B had expected the lower earnings because of the effects Sept. 11 had on Hawai'i's economy. Allen Doane, company president and chief executive officer, said he was pleased to see earnings improve after a 56 percent drop in first-quarter earnings this year.
Among the bright spots he cited in the second quarter was the first year-over-year increase in container volume of subsidiary Matson Navigation Co. since Sept. 11. Volume was up 7 percent from 2001's second quarter.
The company said the improvement was due to transportation contracts, increased shipping prior to the June 30 expiration of West Coast dockworker contracts and "apparent strengthening in some segments of Hawai'i's economy."
John Kelley, A&Bs vice president of investor relations, said that for competitive reasons the company couldn't identify local industries shipping more goods.
Overall though, Matson's operating profit for the quarter was down 21 percent to $14.8 million, from $18.7 million. The company said the decrease was because of lower stevedoring performance in Honolulu and an 8 percent drop in automobile shipments.
Doane cautioned that contract negotiations with unionized dockworkers on the West Coast and Hawai'i are among challenges to future earnings growth, as are concerns of negative effects from Wall Street's bear market on consumer spending and tourism.
At A&B's real estate division, second-quarter operating profits from property leasing and sales were down 14 percent to $10.6 million, from $12.3 million during the year-ago quarter.
The food division, which includes Hawaiian Commercial & Sugar Co. and Kauai Coffee Co., earned $1 million, compared with $1.5 million during the same comparable quarter.
A&B shares closed yesterday up 34 cents at $24.28 before the earnings release. A&B shares are up from a 52-week low of $21.50 on Sept. 20, but down from a 52-week high of $29.15 on May 23.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
