The Honolulu-based conglomerate earned $21.7 million, or 52 cents a diluted share in the quarter, up from $17.8 million, or 43 cents a share, in the like period a year ago.

Wall Street, on average, had expected earnings of 53 cents a share, based on two analysts' estimates.

Revenue came to $316.7 million, an increase of 8.3 percent when compared with last year's $292.5 million.

For the first nine months of the fiscal year, the company earned $62.5 million, or $1.50 a share, compared with $40.8 million, or 99 cents a share, a year ago. Revenue was $904.8 million versus $806.1 million.

Allen Doane, president and chief executive of Alexander & Baldwin, said in a statement that the strong performance of ocean transportation and property operations gave a lift to the quarter's results. The two business units comprise 90 percent of the parent company's assets.

"Alexander & Baldwin business is dependent on the well-being of the Hawai'i economy, especially Matson Navigation," said Nicholas Aberle, an analyst at Caris & Co. in San Diego. "The Hawai'i economy is pretty robust right now."

Aberle does not own any shares of Alexander & Baldwin, nor does his firm have an investment banking relationship with the company.

Alexander & Baldwin also boosted its long-term debt by 47 percent — or $117.8 million — in the quarter to $365.6 million. Its Capital Construction Fund, where it parks tax-deferred funds used to buy ships and associated equipment, fell by 18 percent to $170 million.

Last month, Matson launched its first new container ship in a decade, the MV Manukai. But financing the ship boosted long-term debt and decreased the fund balance.

Alexander & Baldwin also borrowed money to buy property at Wailea Resort on Maui.

On Oct. 1, the company and GolfBC Group bought the real estate assets of Shinwa Gold Group for $131.5 million. GolfBC took the golf-course properties. Alexander & Baldwin got 270 acres of zoned land at the resort for $67 million.

Aberle estimates the Wailea property is worth at least $135 million.

In a twist, Alexander & Baldwin has reclaimed assets it once owned. It developed Wailea starting in the 1970s and sold it to Shinwa Golf for $200 million in 1989. Now, Alexander & Baldwin plans to fully develop Wailea in an 8- to 10-year project.

Looking at the details of the company's operations in the quarter, revenue from the Matson ocean transportation division rose by 6 percent to $191.6 million, while operating profits rose by 49 percent to $25.1 million.

An increase in rates, higher freight volumes in Hawai'i and Guam, improved mix of freight and better results from its joint-venture operations more than offset higher operating costs and a dip in the number of cars shipped.

Operating profit for Matson has returned to mid-2000 levels, before the downturn that resulted from Sept. 11 and the West Coast dockworkers lockout. Profit gains have enabled Matson to resume investing for the long-term, including the launch of MV Manukai. Another container ship will be launched next year.

Revenue from transportation logistics services rose by 13 percent in the quarter to $60.8 million, but operating profits were flat at $1.4 million. Last week, the company announced that its Matson Intermodal System unit would be renamed Matson Integrated Logistics.

In property leasing, the company recorded $20.3 million in revenue, up 8 percent from a year ago. Operating profit rose by 6 percent to $9.1 million. Alexander & Baldwin credited higher occupancy rates for its Mainland commercial properties for the improvement.

As for property sales, revenue soared by 42 percent to $10.4 million, while operating profit was up 8 percent to $2.6 million. In the quarter, property sales included 15 residential resort lots at The Summit at Kaanapali, a business park in O'ahu and 28 residences at Kai Lani.

Food products turned in the weakest performance, with revenue down by 4 percent to $33.6 million and operating profit down by 92 percent to $400,000. Lower production and sales of raw sugar and higher costs hammered profits.

Separately, the company declared a fourth-quarter dividend of 22.5 cents per share, payable on Dec. 4 to shareholders on record as of the close of business on Nov. 6.

Shares of Alexander & Baldwin rose by 92 cents, or more than 3 percent, to $31.22 on higher-than-average volume yesterday. The earnings report was released after the market's close.

Alexander & Baldwin plans to hold a conference call with analysts today to discuss the quarter's earnings. The call will be webcast at 8 a.m. Hawai'i Standard Time. Investors can access the call at www.alexanderbaldwin.com. A replay of the call will be available for a week at the same site.