Maui Land & Pineapple reports $626,000 net loss
By Andrew Gomes
Advertiser Staff Writer
More than $1 million in higher expenses contributed to a $626,000 first-quarter net loss for Maui Land & Pineapple Co. Inc.
The loss, equal to 9 cents per share, compared to a profit of $776,000, or 11 cents a share, in the first quarter of 2002.
GIFFORD
Maui Pineapple Co., a subsidiary of Maui Land & Pine, recorded a $1.5 million operating loss despite 8 percent higher revenues and improved gross margins on its fresh and canned fruit business.
The operating loss, up from a $1.1 million loss in the year-ago quarter, was largely due to a $1.3 million increase in expenses for insurance, depreciation, pensions and litigation.
Maui Pineapple also announced yesterday that Del Monte Fresh Produce dismissed claims of patent infringement against the company over the rights to grow, sell, and license hybrid pineapples that Maui Pineapple sells under its Hawaiian Gold brand.
According to Maui Pineapple, Del Monte dropped the case because Maui Pineapple had sold the hybrid pineapples before Del Monte had a patent.
Kapalua Resort, another subsidiary of Maui Land & Pine, posted a $1.3 million first-quarter operating profit, down from a $3 million operating profit in the year-ago quarter. Revenues were lower because of reduced inventory of real estate for sale, the company said.
Maui Land & Pine's nonresort property business reported am operating profit of $349,000, compared with $319,000 in the year-ago quarter, while revenue of $3.1 million was up from $1.7 million.
Other operations of Maui Land & Pine posted a first-quarter operating loss of $407,000, compared to an operating loss of $360,000 in the year-ago quarter.
Maui Land & Pine has been searching for a new president and chief executive officer to engineer a possible restructuring, after the company's chief executive and chairman disclosed in March that they intended to resign.
President and CEO Gary Gifford will formally resign May 27 at the shareholders meeting, but appointment of a new chief executive is not on the voting agenda.
Chairman Richard M. Cameron will step down May 27 and be replaced by David Heenan, a Maui Land & Pine director.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
