HONOLULU--(BUSINESS WIRE)--Mar. 20, 2009--
Alexander & Baldwin, Inc. (NYSE: AXB)(“Company”), today announced that
it expects first quarter 2009 performance to be negatively impacted by
increased weakness in its transportation segments and by workforce
reduction restructuring costs. Net income is expected to approximate
break-even in the quarter, and is expected to include two commercial
property sales currently in escrow and a workforce restructuring charge
of $5-6 million. These results may be further impacted by market
conditions and the timing of the aforementioned property sales.
“Our early year earnings prospects were diminished by continued national
and international economic contraction and seasonality in our
transportation businesses,” said Allen Doane, chairman and chief
executive officer. “Historically, our first quarter results are lower
than performance later in the year due to normal transportation
patterns. Through the first two months of the year, however, cargo
demand and freight movement have been lower than expected. Matson
Navigation’s eastbound volume from China and westbound volume to Hawaii,
for example, are off 20 and 12 percent, respectively, from 2008 levels.
In addition, the Company’s Logistics volume is down 24 percent through
February, as its intermodal volume has dropped significantly, driven by
lower import and export activity and related inland rail movements.”
Doane continued, “While we do continue to see opportunities for
commercial properties and land sales, we note that the timing of these
sales will be irregular.”
“In anticipation of these earnings challenges, we took deliberate steps
to strengthen our cost and capital structure. We are reducing our
non-union workforce by approximately 10 percent, which is expected to
save about $8 million annually. We have pared $50 million from our 2009
capital budget of $325 million. We renewed a long-term debt facility to
better match financing to the investments we make in long-lived assets.
And later this month we will shift to a 9-ship fleet deployment in our
ocean services segment for additional efficiencies. Other cost reduction
initiatives will be implemented throughout the year to improve earnings,
while we maintain our strong balance sheet and cash flows to pursue
acquisitions and investments that create sustained value in future
The Company will report its first quarter 2009 earnings on April 30,
2009 and will host a webcast to discuss results on May 1, 2009.
About Alexander & Baldwin: A&B
is headquartered in Honolulu, Hawaii and is engaged in ocean
transportation and logistics services through its subsidiaries, Matson
Navigation Company, Inc., Matson Integrated Logistics, Inc. and Matson
Global Distribution Services; in real estate through A&B Properties,
Inc.; and in food products through Hawaiian Commercial & Sugar Company
and Kauai Coffee Company, Inc. Additional information about A&B may be
found at its web site: www.alexanderbaldwin.com.
Statements in this press release that are not historical facts are
“forward-looking statements,” within the meaning of the Private
Securities Litigation Reform Act of 1995, that involve a number of risks
and uncertainties that could cause actual results to differ materially
from those contemplated by the relevant forward-looking statement. These
forward-looking statements are not guarantees of future performance. This
release should be read in conjunction with our Annual Report on Form
10-K and our other filings with the SEC through the date of this
release, which identify important factors that could affect the
forward-looking statements in this release.
Source: Alexander & Baldwin, Inc.
Alexander & Baldwin, Inc.
Meredith J. Ching, 808-525-6669
L. Halloran, 808-525-8422 (Investor Relations)