Matson hit by cargo volume decline
Matson Navigation, the ocean transportation segment of Honolulu-based Alexander & Baldwin, said its fourth quarter operating profit was $21.1 million, 30 percent lower than in the same 2007 period.
Matson's fourth quarter revenue was $239.5 million, down 9 percent over the same 2007 period.
The company said container volumes to Hawaii were off 13 percent, Hawaii automobiles off 54 percent, China containers off 16 percent, and Guam containers off 15 percent.
The company said its logistics services business had operating profit of $4.1 million in the quarter, off 13 percent from the fourth quarter of 2007. Revenue was $99.8 million, down 7 percent from the comparable 2007 period. An increase in highway revenue was masked by lower intermodal revenue.
Sharp drops in cargo volumes to and from Hawaii were one of the contributing factors to Alexander & Baldwin reporting profit of $23.9 million for the fourth quarter compared to $36.4 million in the same 2007 period.
Revenue for the fourth quarter of 2008 was $400 million, compared with revenue of $433 million in the same period of 2007.
For the full year, Matson 'posted a 16 percent decline in operating profit in 2008 as compared to 2007, reflecting a considerable decline in container and auto volume, in line with the accelerated contraction of the Hawaii, Guam and China markets,” said Allen Doane, A&B’s chairman and chief executive officer. “In all of our trade lanes, vigorous focus on cargo mix, yield enhancement, fleet optimization and cost containment initiatives throughout the year partially offset the unexpectedly precipitous volume decline.”
For 2009 the logistics services segment also 'experienced lower volume levels in its service lines that negatively impacted operating profit by 15 percent for the year, although higher yields offset the lower volume to some degree,” Doane said. “As well, higher expenses related to the ramp-up of Matson Global Distribution Services including an acquisition, modestly impacted earnings but provide a solid foundation for growth in 2009.”