Maui Land & Pine halts losing streak

By David Butts
Advertiser Staff Writer

The Kahului-based company said net income was $1.31 per share for the three months to Sept. 30, compared with a net loss of $2.2 million, or 31 cents per share, in the third quarter last year.

Maui Land & Pine, which is more than 40 percent owned by former Time Warner Chairman Steve Case, had been losing money consistently on its retail and pineapple operations.

Last month, it hired David Cole, 50, a former associate of Case's at America Online and an operator of organic farms, to turn around the 1,870-employee company.

After the sale of the shopping centers, Maui Land & Pine's remaining major assets are pineapple production, Kapalua Resort, residential real estate development and commercial property.

Pineapple operations accounted for $225,000 of net income in the third quarter, compared with a loss of $2.2 million in the third quarter of 2002. The company reported higher sales of Hawaiian Gold fresh pineapples, canned pineapple products and pineapples from its Costa Rica subsidiary, Royal Coast Tropical Fruit Co.

The resort operations lost $152,000, slightly better than the $207,000 loss recorded a year ago.

Commercial and property operations contributed $15.3 million to the bottom line, compared with a loss of $340,000 a year ago.

The company sold the Napili Plaza shopping center to Honolulu-based Alexander & Baldwin Inc. in August for $7.1 million. It sold its interest in Queen Ka'ahumanu Center, Maui's largest shopping center, to California real-estate investment firm Somera Investment Partners LLC in September. The sale of the centers netted Maui Land & Pine $10.5 million in the third quarter.

Maui Land & Pine shares were down 25 cents yesterday at $27.25. The earnings were reported after the close of trading.