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The Honolulu Advertiser
Posted on: Saturday, August 4, 2007

Maui Land & Pine’s losses rise

Advertiser Staff

Kahului-based Maui Land & Pineapple Inc. yesterday reported larger losses on higher revenues during the second quarter ended June 30.

REVENUE

Revenue: $38.7 million versus $33.6 million year earlier

Net loss: $3.5 million versus $2.6 million

Loss per share: 44 cents versus 36 cents

Fiscal 2007 first-half revenue: $99.7 million versus $92.5 million

Fiscal 2007 first-half net income: $12.2 million versus $11.2 million

Fiscal 2007 first-half earnings per share: $1.59 versus $1.54

REASONS

  • Increased revenues and operating profit from the community development business were offset by increased operating losses from the agriculture and resort businesses.

  • Resort segment revenues were lower for the first six months of 2007 compared with the same period in 2006. The closure of the Village Course at the end of February 2007 and a reduction in retail space were largely responsible for the lower results.

  • Revenues for the agriculture business fell in the second quarter of 2007 when compared with the second quarter of 2006 because of a decrease in processed-fruit sales.

    WHAT THEY ARE SAYING

    "Maui Pineapple Company's exit from the canned pineapple business dominated results for the second quarter. In addition to severance and pension charges, restructuring costs included adjustments to standard costing and purchase supply agreements."

    David Cole
    Chairman, president and CEO

    WHAT'S NEXT

  • April 2007, the company announced that it would cease substantially all canning and processing of solid-pack pineapple products, although it will continue to produce a small volume through the end of 2007.

  • The company will continue to process pineapple juice and will extend its fresh-fruit line to include products for institutional accounts.

  • Maui Land & Pine anticipates additional charges related to the reduction in canning operations to be taken through the remainder of the year.