Maui Land & Pineapple suffers more losses

Advertiser News Services

Maui Land & Pineapple Co. Inc. yesterday reported a net loss of $2.2 million for the third quarter of 2002 compared with net income of $2.0 million in the same quarter last year.

For the first nine months of the year, the company reported a net loss of $3.5 million compared with net income of $3 million for the comparable period in 2001.

The company said reduced resort real-estate sales accounted for most of the decline in revenues and profits from last year for both the quarter and year-to-date results.

The company said its pineapple segment reported an operating loss of $2.2 million for the third quarter of 2002 compared with an operating loss of $2 million, for the third quarter last year. For the first nine months of 2002, the pineapple segment posted an operating loss of $4.6 million compared with an operating loss of $4 million for the first nine months of 2001.

Revenues of $25.6 million for the pineapple segment in the third quarter were 1 percent higher than the third quarter of 2001. For the first nine months of 2002, revenues of $67.1 million were 2 percent lower than the same period a year earlier.

The increased loss in the pineapple segment, the company said, is mostly attributable to higher general and administrative expenses.

The company said its Kapalua Resort reported an operating loss of $207,000 for the third quarter of 2002 compared with an operating profit of $6.5 million for the third quarter of 2001. For the first nine months of 2002, the resort segment produced an operating profit of $2.3 million compared with an operating profit of $12.7 million for the first nine months of 2001.

Revenues for the third quarter and first nine months of 2002 were lower by 39 percent and 28 percent, respectively, compared with the same periods in 2001.

The company said the drops were primarily due to a lower level of real-estate sales. Reduced contributions from other resort operations resulted from lower visitor counts and occupancy following the Sept. 11 attacks and ensuing downturn in travel.

The company said its commercial and property segment reported an operating loss of $340,000 for the third quarter, compared with an operating loss of $432,000 for the same quarter last year. For the first nine months of 2002, the segment produced an operating loss of $479,000 compared with an operating loss of $810,000 for the same period a year earlier.

Results for the first nine months of 2002 included a nonrecurring $622,000 gain on the sale of a real-estate parcel in the first quarter. The improved results for the quarter were due mostly to lower administrative costs from Queen Kaahumanu Center.

Excluding the first quarter land sale, lower results for the first nine months of 2002 were attributable to increased losses from Queen Kaahumanu Center.