A&B Reports '96 Net of $65.3 Million, Up 17%; Sugar Refining Unit Leads Improvement.HONOLULU--(BUSINESS WIRE)--Jan. 24, 1997--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 fourth-quarter 1996 net income of $17,199,000, or $0.38 per share. Net income for the comparable period of 1995 was $13,374,000, or $0.30 per share. Revenue for the fourth quarter of 1996 was $331,771,000, compared with revenue of $258,180,000 in the fourth quarter of 1995. Net income for the full year 1996 was $65,285,000, or $1.44 per share, versus $55,755,000, or $1.23 per share, in 1995. Results for 1995 included $18,000,000, or $0.40 per share, from the sale of Matson Matson is a surname, and may refer to:
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 $1,020,455,000 a year earlier. The 1995 results included an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $5.1 million, or $0.11 per share, for phasing out unprofitable sugar-growing operations at the Company's McBryde McBryde may refer to:
n. A gradual discontinuation. , which was substantially completed in 1996, were lower than estimated. As a result, a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. adjustment of $2.9 million, or $0.06 per share, was recorded in 1996. A&B's 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. Up 22% in 4th Quarter 51% for the Year Fourth-quarter 1996 consolidated operating profit of $39.6 million was 22-percent higher than in the comparable period of 1995. For all of 1996, consolidated operating profit of $150.9 million was 51-percent higher than in 1995. Both the fourth quarter and the full year benefited from the improved results at California and Hawaiian Sugar Company The California and Hawaiian Sugar Company (C&H) was founded in 1906 and operated from 1921 to 1993 as an agricultural cooperative marketing association owned by the member sugar companies in Hawaii. , Inc. (C&H). Matson's 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 13 percent in the fourth quarter of 1996. A number of one-time and unusual factors contributed, however, to a 28-percent decline in its operating profit during the period. The fourth quarter of 1995 had benefited from one-time revenue associated with the start of the Guam/Pacific Alliance service, and from a high level of interest income due to temporarily high cash balances arising from the sale of Matson Leasing. Operational disruptions related to a new West Coast longshore long·shore adj. Occurring, living, or working along a seacoast. [Short for alongshore.] labor contract continued during the fourth quarter of 1996. These disruptions had the effect of significantly increasing the costs associated with the integration of Matson's Guam/Pacific Alliance service, its Pacific Coast service and its core Hawaii service. Also, greater fuel expenses resulted from higher bunker bunk, bunker large storage bin. bunk forage forage, usually ensilage stored in a large storage bunk and made available to cattle or other livestock along a face of the storage. prices. Total fourth-quarter 1996 Hawaii container volume was nearly the same as that of the 1995 fourth quarter. Total Hawaii automobile volume declined by 11 percent. The decrease in autos 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 full year 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/Pacific Alliance service, but operating profit declined seven percent. For the year, Matson's total Hawaii container volume was down three percent and total automobile volume was down 22 percent. Property Leasing Results Stable Fourth-quarter 1996 property leasing operating profit was three-percent lower than in the comparable period of 1995. The decrease was due primarily to the weaker Hawaii lease market and the absence of rent revenue from properties that were sold in 1996. For the full year 1996, property leasing operating profit rose four percent versus 1995. The increase was due to full-year contributions from properties added to the leased portfolio in the second half of 1995. The Mainland portion of the leased-property portfolio enjoyed continuing high occupancy levels, where the year's occupancy rate 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. Full-year occupancy levels for Hawaii properties averaged 86 percent, versus 90 percent last year. Property Sales Lower in Quarter, Higher for Full Year Total fourth-quarter 1996 property sales revenue was $9.3 million, compared with $16.4 million in sales in the fourth quarter of 1995. Operating profit from property sales this quarter was $3.4 million, versus $10.9 million a year earlier. Sales in the fourth quarter of 1996 included a 66-acre unimproved parcel sold to a Maui utility for a power plant, two lots at Maui Business Park and a total of 29 residential properties. Sales in the fourth quarter of 1995 consisted of three Maui Business Park lots, a 38-acre undeveloped agricultural parcel and 18 residential properties. Property sales revenue was $31.9 million in 1996, compared with $25.8 million in 1995. Operating profit from property sales in 1996 was $15.3 million, versus $14.5 million in 1995. Sales in 1996 included two parcels that were ground leased to others, the power plant parcel, four lots at Maui Business Park and 73 residential properties. Sales in 1995 included 5.5 acres in Maui Business Park, a portion of the land for a value retail center; the 38-acre parcel, three other lots at Maui Business Park and 47 residential properties. Substantially Higher Refined Sugar Sales Volume The food products segment reported 74-percent higher revenue in the fourth quarter of 1996, compared with the fourth quarter of 1995. The increase in revenue was due primarily to a substantial increase in sales volume of refined sugar products by C&H. Also, the volume of sales in 1995 had been affected unfavorably by a refinery workers' strike. Increased domestic sugar consumption and a reduced supply of beet sugar beet sugar: see beet; sucrose. increased market opportunities for cane sugar cane sugar: see sucrose. refiners in 1996. The food products segment had an operating profit of $13.2 million in the fourth quarter, compared with a loss of $8.2 million in the fourth quarter of 1995. In the fourth quarter of 1996, operating profit included a pre-tax benefit of $3.6 million, reflecting a portion of a reversal of the 1995 McBryde closure provision, based on lower actual costs. 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 in Crockett, Calif. For full-year 1996, the food products segment had an operating profit of $26.9 million, on revenue that was 37-percent higher than in 1995. In 1995, the segment had a $27.8 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 performance resulted primarily from substantially stronger refined sugar sales volume, improved product prices and the restructuring cost savings. Full-year 1996 results also had the full benefit, totaling $4.6 million, of the partial reversal of the 1995 charge for the plantation closure. Hawaii agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. operations recorded higher production of sugar and coffee in 1996. Total raw sugar production at the Maui plantation was over 201,000 tons, with the key measure of tons -- sugar per acre rising about four percent over the 1995 level. The coffee harvest is estimated to total 2.4 million pounds of green coffee, an increase of about 29 percent. C&H Leads Improvement; Longshore Actions Troubling "The expected improvement at C&H continued in the fourth quarter, with holiday-based purchases again making that period the strongest of the year," 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. "Unfortunately, longshore labor unrest labor unrest n (US) → conflictividad f laboral on the West Coast also continued and affected Matson adversely. "When we consider the 1996 results in the context of Hawaii's lackluster lack·lus·ter adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" and uncertain economy, we are pleased with the progress we have made. "In addition to C&H's increased profitability and revenue growth from Matson's new services, the full-year property results also were notable. "The results for the property segment continue to reflect the value in our real estate portfolio, the benefit of geographic diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. , the strategic flexibility provided by our mix of products and our ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. market opportunities. When the industry-wide West Coast longshore contract issues are resolved satisfactorily, Matson also should contribute to earnings growth." 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 Fourth-Quarter and Twelve-Months Results
1996 1995
Three Months Ended December 31:
Revenue $331,771,000 $258,180,000
Net Income $17,199,000 $13,374,000
Share Earnings $0.38 $0.30
Average Shares 45,318,000 45,285,000
Twelve Months Ended December 31:
Revenue $1,232,568,000 $1,020,455,000
Net Income $65,285,000 $55,755,000
Share Earnings $1.44 $1.23
Average Shares 45,303,000 45,492,000
Industry Segment Data, Net Income
(In Thousands)
Three Months Ended Twelve Months Ended
December 31 December 31
1996 1995 1996 1995
Revenue:
Ocean Transportation $167,462 $148,595 $661,586 $593,807
Property Devel./Mgmt.
Leasing 9,025 8,805 35,916 34,073
Sales 9,324 16,437 31,909 25,835
Food Products 145,201 83,613 499,667 363,944
Other 759 730 3,490 2,796
Total Revenue $331,771 $258,180 $1,232,568 $1,020,455
Operating Profit:
Ocean Transportation $16,711 $23,220 $81,618 $87,769
Property Devel./Mgmt.
Leasing 5,658 5,827 23,875 23,063
Sales 3,407 10,949 15,307 14,497
Food Products 13,207 (8,217) 26,863 (27,797)
Other 623 684 3,220 2,593
Total Oper. Profit $39,606 $32,463 $150,883 $100,125
Net Income:
Operating Profit $39,606 $32,463 $150,883 $100,125
Interest Expense (8,426) (9,821) (34,565) (37,365)
Capitalized Interest -- 1,068 484 3,936
Corporate Expense (3,563) (2,690) (12,769) (14,742)
Pretax Income 27,617 21,020 104,033 51,954
Income Taxes (10,418) (8,440) (38,748) (19,535)
Income from contin-
uing operations: 17,199 12,580 65,285 32,419
Income from discon-
tinued operations:
Container Leasing -- -- -- 5,336
Gain on sale of
Contain. Leas. -- 794 -- 18,000
Net Income $17,199 $13,374 $65,285 $55,755
CONTACT: Alexander & Baldwin, Inc. John B. Kelley, 808/525-8422 |
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