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The Honolulu Advertiser
Real-estate transactions give A&B a third-quarter boost | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Friday, October 28, 2005

Real-estate transactions give A&B a third-quarter boost

Advertiser Staff

Alexander & Baldwin Inc.'s increased focus on real estate helped boost third-quarter earnings 43 percent to $35.5 million on revenue that was up 19 percent to $451.8 million for the Honolulu-based real-estate, transportation and agriculture company.

THIRD QUARTER 2005

Revenue: $451.8 million, up 19 percent from a year ago

Net profit: $35.5 million, up 43 percent from a year ago

Earnings per diluted share: 81 cents, up from 58 cents

Ocean transportation operating profit: $36.8 million, up 12 percent

Real estate operating profit: $27 million, up 114 percent

Food operating income: $100,000 loss vs. $600,000 profit

REASONS

  • Transportation operating profit largely grew via a Mainland stevedoring and terminal operation, 4 percent more Hawai'i container volume and lower vessel operating costs.

  • Real-estate operating profit more than doubled with help from $59 million in sales at Waikiki's Lanikea condo and a $5.2 million one-time insurance benefit related to a fire at Kahului Shopping Center.

  • Food results included a $1 million charge to revalue coffee inventory.

    WHAT THEY ARE SAYING

    "The company is on track for an outstanding 2005. The quarter was a good one for A&B Properties. ... Matson has been enjoying what might be characterized by 'smooth seas.' "

    Allen Doane
    A&B president and chief executive officer

    WHAT'S NEXT

  • The state selected A&B to finalize a $650 million development plan for 947 residential condos, retail, restaurants and public facilities on 36 acres of public Kewalo waterfront land.

  • Keola La'i, A&B's newest condo tower, broke ground and has nonbinding reservations for 210 of 225 units released for sale in the 352-unit project.

  • Startup costs from infrastructure spending are beginning to be felt from Matson's Guam-China service scheduled to start next year.
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