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Real estate, leasing drive Alexander & Baldwin profit up | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Thursday, February 2, 2006

Real estate, leasing drive Alexander & Baldwin profit up

Advertiser Staff

Alexander & Baldwin Inc. profit rose 25 percent in the fourth quarter, largely on strong real-estate sales and leasing, and a small gain in agriculture operations that offset decreased operating profit in ocean transportation. Net income for the year was up 25 percent, rising to $126 million, compared with $101 million in 2004, for the Honolulu-based company.

FOURTH QUARTER 2005

Revenue: $398.5 million, up 1.5 percent from a year ago

Net profit: $23.4 million, up 25 percent from a year ago

Earnings per diluted share: 53 cents, up from 42 cents

Ocean transportation operating profit: $22.8 million, down 10 percent

Real-estate operating profit: $18.3 million, up 89 percent

Food operating profit: $2 million, up 54 percent

REASONS

  • Ocean transportation unit Matson Navigation Co. experienced a 3 percent drop in Hawai'i container volume and a 20 percent drop in automobile shipping because of competition and one less week in the quarter.

  • Major real-estate sales, including two downtown Honolulu office buildings, generated $7 million in real-estate division operating profit.

  • Sugar sales were down, but higher prices for molasses helped boost agriculture operations.

    WHAT THEY ARE SAYING

    "A&B's successful earnings performance in 2005 makes it difficult — but all the more necessary — to remind investors that we still expect that the results in 2006 will be lower. ... 2005 was a benchmark year."

    Allen Doane
    A&B President and CEO

    WHAT'S NEXT

  • Matson starts its ocean freight transportation service to China this week. The Guam-China service has generated significant start-up expenses for A&B.

  • A&B said its real-estate business prospects remain favorable, though residential markets in Hawai'i appear to be leveling.

  • Development project Kukui'ula, a master-planned Kaua'i community, is slated to break ground soon and complete initial sales in the fourth quarter.
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