Smooth sailing for Alexander & Baldwin in first quarter

Advertiser Staff

Alexander & Baldwin Inc. profits jumped by more than a third primarily on gains from its ocean transportation subsidiary, Matson Navigation Co. A&B agriculture operations benefitted from a one-time federal government payment, while real estate income was down slightly.

First quarter 2005

Revenue: $365.8 million, up 7 percent from a year ago

Net income: $37.7 million, up 39 percent from a year ago

Earnings per share: 86 cents, up from 63 cents a year ago

Ocean transportation operating income: $29.7 million, up 60 percent

Real estate operating income: $27.2 million, down 5 percent

Food operating income: $9 million, up 246 percent

Reasons

• The biggest gain in profits came from ocean transportation unit Matson, which carried 4 percent more Hawai'i containers and had strong results from a stevedoring joint venture bolstered by heavier volume at West Coast ports.

• Real estate profits were down compared with an "exceptional" first quarter in 2004.

• Agriculture profits, which include HC&S, result from higher sugar and power sales plus $5.5 million in federal weather-related relief.

What they are saying

"All in all, it was a great start to the year. ... Although we continue to expect that 2005 results will better 2004, we also remain cautionary in our outlook."

What's next

• Matson has plans to buy two container ships for a new Guam and China service scheduled to start in 2006. The move appeared to disrupt plans by potential rival OceanBlue Express Inc. that had planned to compete with Matson.

• Matson faces increased automobile transportation competition from Pasha Hawaii Transport Lines, which began service in late March.

• A&B is busy with several housing development projects.