A&B Reports 1st Quarter 2001 Earnings of $22.4 Million; Strong Real Estate Activities A Highlight

April 19, 2001

HONOLULU--(BUSINESS WIRE)--April 18, 2001--Alexander & Baldwin, Inc. (Nasdaq:ALEX) today reported first quarter 2001 net income of $22,434,000, or $0.55 per share.

In the first quarter of 2000, the Company reported net income of $26,431,000, or $0.63 per share, after an accounting change that resulted in a one-time, non-cash increase in income of $12,250,000, or $0.29 per share. Excluding that change, income rose by $8.3 million (58 percent), or $0.21 per share. Revenue in the first quarter of 2001 was $275,844,000, compared with $232,225,000 in the first quarter of 2000.

QUARTER BOOSTED BY PROPERTY SALES, LEASE INCOME

"A&B's real estate activities were strong across-the-board, with closings of several large commercial sales in the quarter," said W. Allen Doane, president and chief executive officer of A&B. "The leased-income portfolio's performance was excellent as well, with a 22-percent increase in operating profit.

"During the first quarter, Hawaii's economy continued to grow, benefiting from the momentum that began in 2000. The question is how long this good performance can last -- with the U.S. economic outlook increasingly uncertain and Japan's economy stalled.

"We are beginning to see signs of a weakening in tourism in Hawaii, but it is anyone's guess how significant or prolonged this weakness will be. Regardless of what the economy does in the short-term, A&B is committed to perform at the best level possible. Although the first quarter results exceeded our expectations, we are guarded in our outlook for the remainder of the year."

CONSOLIDATED OPERATING PROFIT $14 MILLION HIGHER

Consolidated operating profit (before interest, corporate expenses and taxes) in the first quarter of 2001 was $44.4 million, up $13.8 million, or 45 percent, from the same period in 2000. The increase was led by the results of the property development and management segment.

MATSON'S OPERATING PROFIT LOWER IN THE QUARTER

In the first quarter of 2001, ocean transportation operating profit was $17.5 million. That was $2.4 million, or 12 percent, lower than the $19.9 million in the first quarter of 2000. First-quarter 2001 Hawaii service container volume was two percent above that in the 2000 first quarter, but automobile volume was level on a year-over-year basis. The decrease in operating profit was the net result of a number of factors, including lower contributions from investments in a shipping operation in Puerto Rico and a stevedoring joint venture, and competitive fleet and rate actions, offset, in part, by higher cargo volume and a general rate increase in the Hawaii service.

HIGHER SALES DRIVE SHARP INCREASE IN A&B PROPERTIES' RESULTS

In the first quarter of 2001, A&B Properties' operating profit of $21.0 million was $13.1 million above the $7.9 million earned in the corresponding period a year earlier.

Property leasing operating profit was $8.7 million in the first quarter of 2001. This was 22 percent higher than the $7.2 million earned in the first quarter of 2000. The improvement was due to the contribution from newly acquired properties, higher occupancy levels and higher lease rates. For the respective first quarters, occupancy levels for U. S. mainland properties averaged 94 percent in 2001, versus 95 percent last year; but Hawaii properties improved to 89 percent in 2001, versus 84 percent last year.

Property sales revenue totaled $43.1 million in the first quarter of 2001, compared with $3.1 million in the first three months of 2000. Operating profit resulting from those sales was $12.2 million, which was $11.5 million higher than in the first quarter 2000 results. Variations in sales activity of this nature reflect the normal episodic nature of real estate transactions. Sales in the first quarter of 2001 included a shopping center and several smaller properties on Bainbridge Island, Wash., and a site for the development of a planned Wal-Mart store in Kahului, Maui.

FOOD PRODUCTS' RESULTS IMPROVED

In the first quarter of 2001, food products' operating profit was $5.1 million, compared with $2.1 million in the first quarter of 2000. The segment benefited from a one-time distribution from the sugar transportation cooperative that handles the Hawaii growers' production and improved sugar prices, but high energy costs reduced investment results from C&H Sugar Company, Inc., in which A&B has a 36 percent ownership interest.

Alexander & Baldwin, Inc., headquartered in Honolulu, is engaged in ocean transportation, through its subsidiary, Matson Navigation Company, Inc.; property development and management, through A&B Properties, Inc.; and 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 that involve a number of risks and uncertainties such as those described on page 31 of the Company's 2000 annual report to shareholders. These factors could cause actual results to differ materially from those projected in the statements.

                       ALEXANDER & BALDWIN, INC.
                  2001 and 2000 First-Quarter Results

                                        2001             2000
                                        ----             ----

Three Months Ended March 31:
Revenue                             $275,844,000     $232,225,000
Income Before Accounting Change      $22,434,000      $14,181,000
Net Income                           $22,434,000      $26,431,000
Basic & Diluted Share Earnings
  Before Accounting Change                 $0.55            $0.34
  Net Income                               $0.55            $0.63
Average Shares Outstanding            40,508,000       42,131,000



                   Industry Segment Data, Net Income
                            (In Thousands)

                                             Three Months Ended
                                                  March 31,
                                            2001             2000
                                            ----             ----

Revenue:
  Ocean Transportation                  $196,609         $200,225
  Property Devel. & Mgmt 
    Leasing                               17,096           14,518
    Sales                                 43,084            3,052
  Food Products                           18,198           13,666
  Other                                      857              764
                                       ---------        ---------
    Total Revenue                       $275,844         $232,225
                                       =========        =========

Operating Profit, Net Income:
  Ocean Transportation                   $17,455          $19,893
  Property Devel. & Mgmt 
    Leasing                                8,740            7,184
    Sales                                 12,216              701
  Food Products                            5,105            2,068
  Other                                      840              709
                                       ---------        ---------
    Total Operating Profit                44,356           30,555
  Interest Expense                        (5,779)          (5,347)
  Corporate Expenses                      (3,791)          (3,502)
                                       ---------        ---------
  Income Before Taxes
   & Accounting Change                    34,786           21,706
  Income Taxes                           (12,352)          (7,525)
                                       ---------        ---------
  Income Before Accounting Change         22,434           14,181
  Cumulative Effect of Acctg. Change          --           12,250
                                       ---------        ---------
  Net Income                             $22,434          $26,431
                                       =========        =========



                      Consolidated Balance Sheets
                            (In Thousands)

                                        March 31,     December 31,
                                       ---------     ------------
                                          2001            2000
                                         ----             ----
                                      (Unaudited)

ASSETS
Current Assets                          $203,339         $208,867
Investments                              164,743          183,141
Real Estate Developments                  52,347           62,628
Property, Net                            974,837          954,692
Capital Construction Fund                152,814          150,405
Other Assets                             110,199          106,279
                                      ----------       ----------
    Total                             $1,658,279       $1,666,012
                                      ==========       ==========

LIABILITIES & EQUITY
Current Liabilities                     $132,456         $153,006
Long-Term Debt                           335,288          330,766
Post-Retirement Benefit Obligs            44,449           44,752
Other Long-Term Liabilities               57,035           56,698
Deferred Income Taxes                    384,661          387,139
Shareholders' Equity                     704,390          693,651
                                      ----------       ----------
    Total                             $1,658,279       $1,666,012
                                      ==========       ==========



                 Consolidated Statements of Cash Flows
                            (In Thousands)

                                            Three Months Ended
                                                 March 31,
                                            2001             2000
                                            ----             ----
(Unaudited)

Operating Cash Flows                     $36,860          $22,101
Capital Expenditures                     (25,551)         (19,034)
CCF Deposits, Net                         (2,409)           1,113
Proceeds From
 (Payment of) Debt, Net                   (3,500)          27,000
Repurchases Of Capital Stock                  --          (20,260)
Dividends Paid                            (9,123)          (9,529)
All Other, Net                             3,583            1,076
                                        --------         --------
Increase (Decrease) In Cash                $(140)          $2,467
                                        ========         ========

Depreciation                             $18,030          $17,111
                                        ========         ========

CONTACT: Alexander & Baldwin, Inc., Honolulu
John B. Kelley, Vice President, 808/525-8422
invrel@abinc.com