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Alexander & Baldwin profits dip slightly in first quarter | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Thursday, April 27, 2006

Alexander & Baldwin profits dip slightly in first quarter

Advertiser Staff

Profits for diversified Honolulu firm Alexander & Baldwin Inc. declined a bit in the first three months of the year. The company's ocean transportation and food product subsidiaries suffered significant operating profit declines, which were nearly offset by a big gain in real estate sales and leasing.

FIRST QUARTER 2006

Revenue: $362.2 million, down 0.7 percent from a year ago

Net profit: $37.4 million, down 0.8 percent from a year ago

Earnings per diluted share: 84 cents, down from 86 cents

REASONS

Ocean transportation operating profit: $18.3 million, down 38 percent

Real estate operating profit: $39.2 million, up 44 percent

Food operating profit: $6.5 million, down 28 percent

  • Ocean transportation unit Matson Navigation Co.'s Hawai'i container business increased 1 percent but decreased 11 percent for autos.

  • Real estate sales included a Maui office building and several other Hawai'i properties. A&B also was a partner in Honolulu luxury condominium Hokua, which closed 247 sales in the quarter.

  • Food results were lower largely because of a federal government payment a year earlier.

    WHAT THEY ARE SAYING

    "We are pleased with the first-quarter results. From both operating and financial perspectives, 2006 is off to a good start. Hawai'i's economy continues to perform at a high level."

    Allen Doane
    A&B president and chief executive officer

    WHAT'S NEXT

  • A&B said full-year earnings are expected to be lower than 2005 because of costs for Matson's new Guam and China service and lost earnings from a discontinued shipping alliance.

  • Matson's Guam and China service is expected to replace more lost alliance earnings in the second half of the year.

  • A&B said its real estate business is well positioned for another "excellent year."

  • A&B shares declined 74 cents yesterday to close at $48.30.
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