A&B profits surge nearly 40%
By David Butts
Advertiser Staff Writer
Hawai'i's growing economy helped lift profit at Honolulu-based Alexander & Baldwin Inc. by nearly 40 percent last year as its Matson shipping subsidiary topped $1 billion in sales for the first time.
Advertiser library photo • Oct. 7, 2003
In a sign of how rapidly the state's economy has turned, Matson said it shipped 36,200 automobiles in the fourth quarter, up 29 percent from the same period a year ago. The number of containers shipped in the fourth quarter was up 15 percent at 42,200.
Alexander & Baldwin, parent of Matson, predicts 2004 will be a good year but not as strong as 2003.
For the three months to Dec. 31, Alexander & Baldwin, earned $18.8 million, or 44 cents per share, up from $17.4 million, or 43 cents, a year earlier. For all of 2003, the company's net income was $81.3 million, or $1.95 per share, up 39.7 percent from 2002, when it earned $58.2 million, or $1.42 per share.
"The 2003 fourth quarter rounded out a good year for A&B, with especially strong performance at both Matson and A&B Properties, the two largest components of the company," said Allen Doane, president and CEO, in a statement.
Doane warned, however, that the company will probably not be able to repeat the 40 percent growth in earnings this year.
"As we look toward the company's performance in 2004, improved service levels at Matson, benefits from the new real estate investments and the improving economic outlook for Hawaii have the prospect, in combination, to result in continuing the growth of our earnings, although not at the pace achieved in 2003," his statement said.
Alexander & Baldwin's sales rose 16 percent in the fourth quarter to $327.7 million. For the year, sales were up 13 percent to $1.23 billion.
Fourth quarter profit benefited from a one-time gain of $16.7 million related to a Matson subsidiary joining with other marine terminal operators to form a multi-employer pension plan.
Matson Navigation, which provides ocean and land transportation, and Matson Integrated Logistics, which arranges shipping for clients, combined for $1.01 billion in sales for the year and $267.8 million for the fourth quarter.
Matson chartered a ship to begin a new roll-on/roll-off auto service — where cars are driven directly onto the ships instead of loaded into containers — in the fourth quarter. The company also had use throughout the fourth quarter of its new container ship, MV Manukai, which made its inaugural voyage in the third quarter.
Sales activity at Alexander & Baldwin's property development and management business was off 68 percent at $10.3 million in the fourth quarter.
A year ago the company sold a shopping center and industrial property in California that lifted overall sales.
Doane said performance lagged in the food products segment of the business because of lower sugar production. Fourth-quarter profit from food products was down 91 percent at $500,000.
Doane also announced that Christopher Benjamin will become chief financial officer; Thomas Wellman will be promoted to controller and treasurer; and Charles Loomis will be promoted to associate general counsel.
Reach David Butts at 535-2453 or dbutts@honoluluadvertiser.com.
