Matson Profit Surges 67 Percent

Ocean carrier Matson's operating profit surged 67 percent in the third quarter on 14 percent growth in revenue as the China trade boomed, supporting a 20 percent increase in parent company Alexander & Baldwin's revenue and doubling of its net profit.

Matson reported revenue of $267.5 million and operating profit of $40.4 million. Growth was “principally due to a $24.8 million increase resulting from higher yields and improved cargo mix, principally in the China trade,” the company said in an earnings statement.

Coupled with real estate transactions, that pushed A&B’s revenue up to $444.3 million, compared to revenue of $371.0 million in the third quarter of 2009. A&B’s net income for the third quarter of 2010 was $25.7 million. Net income in the third quarter of 2009 was $8.5 million.

China container volume increased 29 percent in the third quarter of 2010 compared with 2009, principally due to the commencement of Matson’s second China string serving South China, as well as an increase in market demand.

Guam container volume was flat in the third quarter of 2010, but reflected a decline in eastbound containers that were offset by westbound container growth.

The higher ocean transportation volume in China was partially offset by a decrease in Hawaii volume. Total Hawaii container volume was down 2 percent compared to the third quarter of 2009, principally reflecting lower eastbound shipments of agricultural products, Matson said. Matson’s Hawaii automobile volume for the quarter was 10 percent lower than the third quarter of last year, due principally to the timing of automobile rental fleet replacement activity.
(Source:www.joc.com)