Container carrier benefited from volume growth to Hawaii and Guam and lower fuel prices.
Matson, which offers container service between the U.S. mainland and Hawaii and last November announced an agreement to acquire Horizon Lines this year and take over its service to Alaska, said it will have a better than expected fourth quarter.
Matson said it expects ocean transportation operating income to be approximately $45 million, primarily driven by higher than expected freight rates in its China service and continued rate and volume growth in Hawaii and Guam. Last year the company had an ocean transportation operating income of $16 million in the fourth quarter.
Matson also said “the timing of fuel surcharge collections in the company’s Hawaii and Guam services positively impacted operating income performance in the quarter as bunker fuel prices declined sharply, leading to better than expected fuel surcharge collections relative to the company’s fuel expenditures. As a result, Matson lowered its fuel surcharge in two separate announcements during the fourth quarter. For the full year 2015, ocean transportation operating income is expected to be flat to modestly higher than 2014 levels.”
In its logistics business, Matson said it expects fourth quarter operating income to be approximately $3.0 million, primarily driven by continuing improvements in volume, yield and warehouse operations. In the fourth quarter of 2013, logistics operating income was 1.9 million. For the full year 2015, the company expects logistics operating income to exceed 2014 levels.
Matson reports strong fourth quarter
