MATSON NAVIGATION SEES 33% DROP IN 2ND-QUARTER OPERATING PROFIT

MATSON NAVIGATION SEES 33% DROP IN 2ND-QUARTER OPERATING PROFIT

   Matson Navigation Co. Inc., the ocean transportation subsidiary of Alexander & Baldwin Inc., said Thursday its second quarter operating profit fell 33 percent to $18.7 million.

   The carrier said the lower results were due to modestly lower cargo volume, higher fleet costs, higher information technology expenses and lower results from a stevedoring joint venture with Stevedoring Services of America. Those negatives were partially offset by a rate increase enacted in the second quarter.

   Hawaii service container volumes declined 2 percent while automobile volume rose 2 percent.

   For the first half of 20001 operating profit was $36.2 percent, down 24 percent from the first half of 2000. First-half container volume was flat, while automobile volume rose 1 percent.

   Matson also said it has sold the assets of its subsidiary, Matson Services Co. to Hawaiian Tug and Barge. The primary components of the sale are two Matson Services tugs, the “Joe Sevier” and “Maoi,” which provide harbor assistance at Kahului, Maui and Hilo, Hawaii, respectively. Terms of the deal were not disclosed.