A&B earns $17.6 million as Matson rebounds

Advertiser Staff

Honolulu conglomerate Alexander & Baldwin earned first-quarter profits of $17.6 million as its shipping subsidiary rebounded from post-Sept. 11 struggles.

The profits, worth 43 cents per share of A&B's publicly traded stock, were up 79.4 percent from abnormally low first-quarter 2002 profits of $9.8 million, or 24 cents per share. This year's profits are closer to typical for A&B.

Sales of $273 million on the quarter were up 16.3 percent from first-quarter 2002.

It was the 17th straight quarter of profits for A&B, which owns shipping company Matson Navigation, Hawai'i and West Coast real estate, and a sugar-cane mill on Maui. A&B officials said they expect better earnings this year as the economy continues to improve.

"There was no question that our earnings in the first quarter of 2003 would be better than the depressed results in the first quarter of 2002, when the effects of Sept. 11 were still being felt at Matson," said W. Allen Doane, president and chief executive officer of A&B. "Results of the first quarter were generally consistent with that outlook."

Doane predicted stronger tourism in the latter half of the year would further help the company's shipping operations.

Stronger results at Matson are evident in A&B's before-tax income of $23.5 million, up from $13.5 million in first-quarter 2002.

Matson earned $12.1 million of first-quarter operating income on $186 million in sales, compared with profits of $2.4 million on $155 million in sales in first-quarter 2002. Leading the way was a 53 percent increase in cars brought to Hawai'i on Matson ships.

A&B's property development and management arm earned another $9 million in operating income, comparable with the previous first-quarter results. The company's food products division earned $1.9 million, down slightly from $2.1 million in first-quarter 2002.

A&B stock (NYSE: ALEX) closed at $26.71 per share yesterday, up 1.6 percent on the day.