A&B Reports $23.1 Million 1996 Third Quarter Net Income; Food Products, Property Sales Primary Contributors to Improvement.HONOLULU--(BUSINESS WIRE)--Oct. 17, 1996--Alexander & Baldwin Baldwin, cities, United States Baldwin. 1 Uninc. city (1990 pop. 22,719), Nassau co., SE N.Y., on the south shore of Long Island, on Baldwin Bay; settled 1640s. A fishing center and summer resort, it has varied manufactures. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALEX) today reported third quarter 1996 net income of $23,125,000, or $0.51 per share. Net income for the comparable period of 1995 was $10,345,000, or $0.23 per share. Revenue for the third quarter of 1996 was $333,829,000, compared with revenue of $246,286,000 in the third quarter of 1995. Net income for the first nine months of 1996 was $48,086,000, or $1.06 per share, versus $42,381,000, or $0.93 per share, in 1995. Results for the first nine months of 1995 included $17,206,000, or $0.38 per share, from the sale of Matson Leasing Company, Inc. (Matson Leasing) and $5,336,000, or $0.11 per share, from its operations. Revenue for the first nine months of 1996 was $900,797,000, compared with revenue from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $762,275,000 a year earlier. Matson Revenue and Costs Higher The revenue of Matson Navigation Company Matson Navigation Company, a subsidiary of Alexander & Baldwin, is a private ocean transportation company with roots extending into the late 19th century. It is credited with introducing mass tourism to Hawaii with the opening of the Moana Hotel (now known as the Moana Surfrider Hotel) , Inc. (Matson) rose 12 percent in the third quarter of 1996. Various factors, however, contributed to a 22-percent decline in its operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. during the period. Interest income was lower because last year Matson had higher cash balances arising from the sale of its Matson Leasing subsidiary in June 1995. During the third quarter of 1996, operational problems associated with the integration of Matson's new Guam/Alliance service, its Pacific Coast service and the Hawaii service raised costs at its marine terminals. Higher longshore long·shore adj. Occurring, living, or working along a seacoast. [Short for alongshore.] wages and overhead costs overhead costs see fixed costs. , combined with operational disruptions related to the negotiation and ratification The confirmation or adoption of an act that has already been performed. A principal can, for example, ratify something that has been done on his or her behalf by another individual who assumed the authority to act in the capacity of an agent. of a new West Coast longshore labor contract, also reduced margins during the quarter. Total third-quarter 1996 Hawaii container volume was virtually the same as that of the 1995 third quarter. Total Hawaii automobile volume declined 25 percent, however. That decrease was due primarily to fewer cars shipped for rental-company fleets, fewer transfers of military personnel and some competitive losses of autos moving from Hawaii to the U.S. mainland. For the first nine months of 1996, ocean transportation revenue rose 11 percent, reflecting primarily the start-up Start-up The earliest stage of a new business venture. of the Guam/Alliance service, and operating profit rose about one percent. For the first nine months, Matson's total Hawaii container volume was down four percent and total automobile volume was down 26 percent. On October 3, members of the International Longshoremen's and Warehousemen's Union ratified rat·i·fy tr.v. rat·i·fied, rat·i·fy·ing, rat·i·fies To approve and give formal sanction to; confirm. See Synonyms at approve. a new three-year contract covering West Coast ports. Negotiations continue for ports in Hawaii. Income-Property Results Stable Third-quarter 1996 property leasing operating profit was virtually the same as in the comparable period of 1995. In the first nine months of 1996, property leasing operating profit rose six percent versus the same period in 1995. The increase was due primarily to contributions from properties added to the leased portfolio in the second half of 1995. The leased-property portfolio benefited from continuing high occupancy levels for Mainland properties, where year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) averaged 97 percent, the same high level as in 1995. Occupancy levels for Hawaii properties averaged 87 percent, versus 90 percent last year. Maui Property Sale Boosts Results Total third-quarter 1996 property sales revenue was $15.3 million, compared with $2.4 million in sales in the third quarter of 1995. Operating profit from property sales this quarter was $8.7 million, versus $0.3 million a year earlier. Sales in the third quarter of 1996 included a seven-acre parcel in Kahului, Maui with a Kmart store ground lease, as well as an improved business lot and a total of 25 residential properties. Sales in the third quarter of 1995 consisted of 15 residential properties. Property sales revenue was $22.6 million in the first nine months of 1996, compared with $9.4 million in the comparable period of 1995. Operating profit from property sales in the first nine months was $11.9 million, versus $3.5 million in the same period in 1995. Nine-month sales in 1996 included the Kmart parcel, a developed business property, two improved business lots and 44 residential properties. Sales in the comparable period of 1995 included several developed business lots, an unimproved parcel and 29 residential properties. Higher Refined Sugar Sales Volume Continues The food products segment reported 66-percent higher revenue in the third quarter of 1996, compared with the third quarter of 1995. The increase in revenue was due primarily to higher sales volume of refined sugar products. The volume of sales in 1995 had been affected unfavorably by a refinery workers' strike. In addition, a smaller domestic sugar beet sugar beet, variety of beet used commercially as a source of sugar. sugar beet Variety of beet (Beta vulgaris) that accounts for about two-fifths of global sugar production, making it second only to sugarcane as a source of the world's sugar. crop has increased market opportunities this year for cane sugar cane sugar: see sucrose. refiners. The segment had an operating profit of $11.8 million in the third quarter, compared with a loss of $4.4 million in the third quarter of 1995. Adding to the improved results were lower costs resulting from the December 1995 restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the sugar-refinery operations. For the first nine months of 1996, the food products segment had an operating profit of $13.7 million, on revenue that was 26 percent higher than in the prior year. In the same period of 1995, the segment had a $19.6 million operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , including an $8.1 million charge for the closing of sugar-growing operations on Kauai. The improvement in nine-month performance resulted from stronger sales volume, improved product prices, the refinery strike in the 1995 period and the restructuring cost savings. 1996 Results Improve, But Challenges Remain "Taken together, the quarter's improved results are encouraging," said John C. Couch A couch, loveseat, sofa, settee, lounge, davenport or chesterfield are items of furniture for the comfortable seating of more than one person. Compare the joiner's settle, with its separate seat cushions. , chairman, president and chief executive officer of A&B. "Revenue from Matson's new Guam/Alliance service has exceeded expectations. Our food products segment is benefiting from a successful restructuring and from higher demand as a result of a shortage of beet sugar beet sugar: see beet; sucrose. . Also, stable earnings from our property leasing portfolio, combined with the continuing demand for well-located, quality real estate projects confirms the underlying values of our property assets. "At the same time, however, significant challenges remain. Hawaii's economy is recovering slowly and, while tourism is showing some strength, the construction industry remains depressed. Costs in our ocean transportation segment rose significantly in the third quarter, reflecting not only the adverse impact of labor contract negotiations, but also difficulties encountered as Matson integrated the Guam/Alliance service into its Hawaii service operations. Problems with the U.S. sugar program, specifically administration of the tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic rate quota quota In international trade, a government-imposed limit on the quantity of goods and services that may be exported or imported over a specified period of time. Quotas are more effective than tariffs in restricting trade, since they limit the availability of goods rather , continue to be a source of concern for cane sugar refiners like C&H. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite these and other challenges, our experience during the quarter makes me optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects for continued success." Alexander & Baldwin, Inc., headquartered in Honolulu, has two major subsidiaries: Matson Navigation Company, Inc. (ocean transportation) and A&B-Hawaii, Inc. (property development and management, and food products). -0-
Alexander & Baldwin, Inc.
1996 and 1995 Third Quarter and Nine Months Results
1996 1995
Three Months Ended September 30:
Revenue (from continuing operations) $333,829,000 $246,286,000
Net Income $23,125,000 $10,345,000
Share Earnings $0.51 $0.23
Average Shares 45,293,000 45,529,000
Nine Months Ended September 30:
Revenue (from continuing operations) $900,797,000 $762,275,000
Net Income $48,086,000 $42,381,000
Share Earnings $1.06 $0.93
Average Shares 45,298,000 45,562,000
Industry Segment Data, Net Income
(In Thousands)
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
Revenue (from continuing operations):
Ocean Transportation $168,701 $150,507 $494,124 $445,212
Property Devel./Mgmt.
Leasing 8,918 8,746 26,891 25,268
Sales 15,299 2,403 22,585 9,398
Food Products 139,518 83,946 354,466 280,331
Other 1,393 684 2,731 2,066
Total Revenue $333,829 $246,286 $900,797 $762,275
Operating Profit (from continuing operations):
Ocean Transportation $20,646 $26,592 $64,907 $64,549
Property Devel./Mgmt.
Leasing 6,032 6,033 18,217 17,236
Sales 8,673 328 11,900 3,548
Food Products 11,848 (4,350) 13,656 (19,580)
Other 1,356 640 2,597 1,909
Total Oper. Profit $48,555 $29,243 $111,277 $67,662
Net Income:
Operating Profit $48,555 $29,243 $111,277 $67,662
Interest Expense (8,469) (10,428) (26,139) (27,544)
Capitalized Interest -- 915 484 2,868
Corporate Expenses (2,970) (3,462) (9,206) (12,052)
Pretax Income 37,116 16,268 76,416 30,934
Income Taxes (13,991) (5,923) (28,330) (11,095)
Income from contin-
uing operations: 23,125 10,345 48,086 19,839
Income from discon-
tinued operations:
Container leasing -- -- -- 5,336
Gain on sale of Con-
tainer Leasing -- -- -- 17,206
Net Income $23,125 $10,345 $48,086 $42,381
CONTACT: Alexander & Baldwin John B. Kelley, 808/525-8422 jbkell@aloha A type of TDMA transmission system developed by the University of Hawaii used for satellite and terrestrial radio links. In the traditional ALOHA system, packets are transmitted as required, and, like Ethernet's CSMA/CD method, collisions can occur. .net |
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