A&B posts earnings rise of 6%
By Rick Daysog
Advertiser Staff Writer
By Rick Daysog
Alexander & Baldwin Inc.'s earnings rose nearly 6 percent in the second quarter, helped by the company's international shipping markets and small gains in its logistics and leasing segments.
The company netted $32 million, or 74 cents per share, during the three months ending June 30, up from $30.2 million, or 68 cents per share, in the year-earlier period.
The Honolulu-based company had been expected to earn 73 cents per share by four financial analysts surveyed by Bloomberg L.P.
Alexander & Baldwin's stock closed at $53.26 on the Nasdaq market yesterday, down $2.02.
"Collectively, these results confirm that our multi-industry, multi-market strategy provides stability and opportunity alike," said Allen Doane, chairman and chief executive officer, in a news release.
"We are poised for a banner year led by future real estate sales and Matson's China service that should result in A&B realizing higher earnings than we previously expected."
The company's ocean transportation division saw operating profits rise $14.7 million, or 60 percent, to $39.1 million due in part to its new China service. Matson Navigation Co.'s ships for that fledgling business have benefited from higher rates and are running near full capacity, the company said.
The shipping subsidiary's Hawai'i container volume was down 5 percent due to a decline in automobile and building materials shipments.
Alexander & Baldwin's operating profit for its logistical services unit increase by $200,000 to $5.5 million while income from the company's real estate leases increased by $100,000 to $12.3 million.
However, operating profits from property sales tumbled $6.4 million, or 59 percent, to $4.5 million.
Reach Rick Daysog at firstname.lastname@example.org.