Alexander & Baldwin Inc.'s second-quarter earnings slipped 7.5 percent because of lower sugar production and a dip in shipping volume.

The Honolulu-based company said it earned $29.6 million, or 71 cents per share, during the three months ending June 30, down from $32 million, or 74 cents per share, in the year-earlier quarter.

Revenues were up 8.7 percent to $463.9 million from second-quarter 2007's $426.9 million.

"Our performance, while positive, was constrained by a number of external factors, particularly the dramatic rise in fuel prices, softening transportation volume, slowing real estate and unfavorable weather trends," said Allen Doane, the company's chief executive officer.

The company also posted results from continuing operations that were below Wall Street's expectations. On this basis, Alexander & Baldwin reported a profit of 61 cents a share; the consensus estimate of six analysts polled by Bloomberg L.P. was 77 cents.

Shares of A&B declined 80 cents to close at $42.94 on the Nasdaq market.

Operating profits at the company's Matson Navigation Co. subsidiary were down $1.7 million, 4.8 percent, to $37.4 million from the previous first quarter's $39.1 million.

Shipments of cars rose by 2 percent to 23,600 vehicles but Matson's container volume to Hawai'i declined 8 percent to 39,000 due to the sluggish local economy.

Profits from real estate sales more than doubled during the quarter to $9.1 million from the year-earlier's $4.5 million.

A&B said it benefited from the sale of a Maui residential complex, the Kahului Town Terrance, and from the ongoing development of other projects, such as the Keola La'i condominiums downtown.

The company's agribusiness arm posted a $4.9 million operating loss during the second quarter as its sugar production declined 20 percent to 50,100 tons due in large part to drought conditions on Maui. A&B owns Hawaiian Commercial & Sugar Co. on Maui.

During a conference call with investors yesterday, Doane provided an update on the U.S. Justice Department's investigation into competitive practices of domestic shipping companies.

Matson previously disclosed that it received a grand jury subpoena on April 21 for documents.

Earlier this year, competitor Horizon Lines disclosed that federal agents had served search warrants on it as part of an antitrust probe into carriers serving Puerto Rico.

Matson, which does not serve the Puerto Rico market, is cooperating with the investigation, Doane said.

He added that the company has been named in 14 civil suits filed since the federal investigation came to light.