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Drop in real-estate sales hurts A&B's first-quarter profits | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Tuesday, May 1, 2007

Drop in real-estate sales hurts A&B's first-quarter profits

Advertiser Staff

Alexander & Baldwin Inc. reported a 34 percent decrease in first-quarter profit to $24.7 million from the same quarter a year earlier, principally because the company sold less real estate during the first three months of this year.

FIRST QUARTER

Revenue: $385 million, up 7 percent vs. year ago

Net profit: $24.7 million, down 34 percent vs. year ago

Earnings per diluted share: 58 cents vs. 84 cents year ago

Ocean transportation operating profit: $18.8 million, up 3 percent vs. year ago

Transportation logistics operating profit: $5.6 million, up 19 percent vs. year ago

Real estate operating profit: $23.8 million, down 39 percent from $39.2 million

Food operating profit: $3.6 million, down 45 percent from $6.5 million

REASONS

  • Ocean transportation volume to Hawai'i via Matson Navigation Co. fell 28 percent for cars and 3 percent for containers, but better yields and Matson's year-old China service helped raise operating profit.

  • Real-estate leasing generated $15 million in operating profit, up 24 percent, but operating profit from property sales fell 68 percent to $8.8 million. Sales a year earlier included 247 units from the Hokua residential tower joint venture and several commercial parcels.

    WHAT THEY ARE SAYING

    "The company continues to make significant strides in its construction activities. ... Taken together, our leasing segment, development and property sales pipeline put us on track for another year of favorable earnings growth."

    Allen Doane
    A&B president and chief executive officer

    WHAT’S NEXT

  • A&B expects 2007 earnings growth of 13 percent-15 percent for real estate, 5 percent-8 percent for transportation, and up to 3 percent for agribusiness.

  • Matson says its China service will strengthen, providing moderate ocean transportation earnings growth.

  • A&B's transportation logistics unit in April formed a new subsidiary to handle warehousing, distribution, freight forwarding and sales of cargo space on non-Matson ships.
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