Alexander & Baldwin, the conglomerate parent of Matson Navigation, reported profit for the third quarter ending September 30 of 2011 of $8.7 million, compared to $25.7 million, as earnings took a hit from Matson’s decision to discontinue one of its two transpacific container liner services.
A&B’s revenue for the third quarter of 2011 was $440.2 million, compared to $437.3 million for the third quarter of 2010.
Matson Lines had an operating profit of $28.6 million in the quarter, a 33 percent reduction from the same 2010 period. Losses related to the service shutdown amounted to $6.1 million.
Matson revenue was $281.8 million in the quarter, up 8 percent from the same period in 2010.
The revenue increase was principally due to higher fuel surcharges, due to increased fuel prices, and an increase in volume, primarily in the Hawaii trade. These increases were partially offset by lower yields and cargo mix, principally in the China trade.
Matson said it moved 35,400 containers during the third quarter, 3 percent more than in the same 2010 period, and 19,700 automobiles, 3 percent more than in the third quarter of 2010.
Matson’s remaining container service from China moved 15,400 containers in the third quarter, two percent more than the comparable 2010 period, while container volumes to Guam were 3,400 in the third quarter of 2011, down three percent from the third quarter of 2010.
Matson Logistics had third quarter operating profit of $2 million, 11 percent more than the same 2010 period. Revenue was $99.2 million, up 7 percent. The increase was principally due to higher intermodal volume, partially offset by lower highway volume.
Matson profit takes $6 million hit from service end
