ALEXANDER & BALDWIN WARNS OF LOWER PROFITS

ALEXANDER & BALDWIN WARNS OF LOWER PROFITS

   Alexander & Baldwin Inc., the parent company of Matson Navigation, has warned that it expects earnings per share in the second quarter ending June 30 to be 10 to 15 percent lower than the $0.69 earned in the second quarter of 2000.

   The Honolulu-based group said property sales was a major factor in the difference in results. A&B also expects lower results for Matson’s Hawaii service, for its stevedoring joint venture on the West Coast and from its investment interest in a shipping service to Puerto Rico.

   'Minimal freight growth in Hawaii and a slowdown of growth in mainland and other offshore markets have led to increased competitive pressure in ocean transportation,' A&B said.

   Matson has taken a number of actions 'to maintain its market share, to reduce operating costs and to increase productivity,' A&B said. These actions include increases in terminal productivity, closure of several container freight stations, increases in vessel operating efficiency and reductions in overhead expenses.

   A significant portion of A&B’s earnings comes from business activity in Hawaii. 'As 2001 progresses, Hawaii’s outlook for economic growth appears uncertain,' the group said.

   The A&B group’s activities range from ocean transportation and property development and management, to food products.

   Meanwhile, A&B is planning to sell 3.4 million shares in BancWest Corp. to BNP Paribas SA. If the transaction is completed, it will result in an after-tax realized gain of about $68 million, the group said. At that point, A&B will have no additional holdings of stock in publicly traded companies.