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The Honolulu Advertiser
Posted on: Saturday, July 29, 2006

Real estate, ag operations help increase A&B's earnings

Advertiser Staff

Alexander & Baldwin Inc. achieved a modest gain in second-quarter profit from big jumps in real-estate and agricultural operations, offsetting lower results in the company's ocean transportation subsidiary, Matson Navigation Co., which is building up its relatively new service to China.


Revenue: $418.2 million, up 6.9 percent from a year ago

Net profit: $30.2 million, up 2.7 percent from a year ago

Earnings per diluted share: 68 cents, up from 66 cents

Ocean transportation operating profit: $24.4 million, down 37 percent

Real estate operating profit: $23.1 million, up 51 percent

Food operating profit: $3.1 million, up from $300,000


  • Two Arizona retail center sales boosted real-estate results, and 98 percent occupancy produced strong commercial property leasing revenue.

  • Higher expenses and lower Hawai'i container and automobile volumes hurt Matson results despite a 10 percent increase in revenue. Volume offset lower-than-planned rates for Matson's China service.

  • Favorable pricing and sales of sugar and electricity fed the tenfold jump in agriculture business results.


    "We are on track for a very good 2006, and remain confident that progress on major real estate develop-ment projects and Matson's trans-Pacific expansion will position the company for even stronger performance in the years to come."

    Allen Doane
    A&B president and chief executive officer


  • A&B said Matson results so far this year are in line with its plan, and that results for the second half of 2006 should approach or match the second half of last year.

  • Full-year real-estate results should meet or exceed A&B's long-term goal of 13 percent to 15 percent annual growth, A&B said, noting a softening housing market and robust commercial property market.

  • Agriculture profitability is forecast to be modest for the rest of the year.