A&B Reports Full-Year 2000 Earnings; Ocean Transportation, Real Estate Again Lead Improvement

January 26, 2001

HONOLULU--(BUSINESS WIRE)--Jan. 26, 2001--Alexander & Baldwin, Inc. (Nasdaq:ALEX) today reported that, including an accounting change, its net income for all of 2000 was $90,574,000, or $2.21 per share. The accounting change increased net income by $12,250,000, or $0.29 per share. Before the accounting change, income was $78,324,000, or $1.92 per share. In 1999, A&B had net income of $62,579,000, or $1.45 per share. The 1999 results included a one-time write-down of assets associated with A&B's coffee business that reduced full year and fourth quarter 1999 net income by $9,571,000, or $0.22 per share. If both of the one-time items were excluded from a comparison of the years, share earnings rose by 15 percent. Revenue in 2000 was $1,068,646,000, compared with $999,998,000 in 1999.

In the fourth quarter of 2000, A&B had net income of $14,546,000, or $0.36 per share, compared with $5,016,000, or $0.12 per share, in 1999. Revenue in the fourth quarter of 2000 was $261,669,000, compared with $263,584,000 in the fourth quarter of 1999.

2000 Results Reflect Improved Operations, Economy

"A&B's performance in 2000 exceeded our target objectives for the year," said W. Allen Doane, president and chief executive officer of A&B. "The 15-percent improvement in 2000 earnings per share (before one-time items) represents a second consecutive year of significant earnings increase.

"The economy of Hawaii did strengthen during the year, but higher bunker fuel prices were an unexpected problem, jumping 60 percent, and raw sugar prices reached unprecedented lows in the early part of the year. Despite these challenges, results for the year were positive.

"Matson demonstrated its strength and resiliency by increasing its profitability 12 percent, while our real estate business had an exceptionally good year, with a 21 percent increase in operating profit. As we begin the new year, we are watching the U.S. economy closely for changes that may impact Hawaii negatively. At the same time, we continue to move ahead in improving the Company for 2001 and the years ahead."

Full Year and 4th Quarter Consolidated Operating Profit Higher

Consolidated operating profit (before interest, corporate expenses and taxes) in 2000 was $158.6 million, up $15.6 million, or 11 percent, from 1999. The year's improvement was led by better results in the ocean transportation and the property development and management segments.

In the fourth quarter of 2000, A&B's consolidated operating profit was $32.2 million. That was $2.7 million, or nine-percent, higher than the $29.4 million in the fourth quarter of 1999. The ocean transportation segment, food products and property leasing all contributed to the quarter's improvement.

In both the full year 2000 and the fourth quarter, interest expense was higher than in the corresponding periods in 1999, reflecting both increased debt balances and higher rates. Corporate expenses were lower in both periods.

Matson Operating Profit Up 12 Percent in 2000

For 2000, ocean transportation operating profit was $93.7 million. This was an increase of $10.0 million, or 12 percent, from $83.8 million in 1999. Matson's Hawaii service container volume was slightly higher in 2000 and its automobile volume was 31-percent higher. The year's results also were boosted by improved performance by Matson's terminal operating joint venture, and its intermodal and terminal subsidiaries.

In the fourth quarter of 2000, ocean transportation operating profit was $19.8 million. That was an increase of $1.5 million, or eight percent, from $18.3 million in the fourth quarter of 1999. Fourth-quarter 2000 Hawaii service container volume was five-percent below the 1999 fourth quarter, but automobile volume was six-percent higher. For accounting purposes, the fourth quarter of 1999 included 14 weeks, versus the more normal 13 weeks in 2000. On a weekly basis, container volume in the fourth quarter of 2000 was three-percent higher and automobile volume 14-percent higher.

Real Estate Results Up 21 Percent

A&B Properties, Inc. (Properties) conducts the property management and development activities of A&B. For the year 2000, Properties' operating profit of $54.3 million was up $9.4 million, or 21 percent, from $44.9 million a year earlier. Real estate sales and property management activities both contributed to the improvement. In the fourth quarter of 2000, Properties' operating profit of $7.0 million was slightly below the $7.2 million earned in the corresponding period a year earlier.

Property leasing operating profit was $30.1 million in 2000. This was ten-percent higher than the $27.5 million earned in 1999. The improvement was due to higher occupancy levels, higher rate levels and new properties acquired. Occupancy levels throughout 2000 for U.S. mainland properties averaged 96 percent, versus 94 percent in 1999; Hawaii properties improved to 86 percent, versus 81 percent in 1999.

In the fourth quarter, operating profit from property leasing was $7.9 million. This was $0.9 million, or 14-percent, higher than the $6.9 million in the fourth quarter of 1999.

Property sales revenue totaled $46.3 million in 2000, compared with $48.0 million in 1999. Operating profit resulting from these property sales was $24.2 million, which was $6.8 million, or 39-percent, higher than the $17.4 million in 1999.

Property sales activity was relatively low in the fourth quarters of both 2000 and 1999. Property sales totaling $3.8 million took place in the fourth quarter of 2000, compared to $4.9 million in the fourth quarter of 1999. In 2000, there was an operating loss in the period of $0.9 million. In the fourth quarter of 1999, operating profit was $0.3 million.

Food Products' Results Reflect Low Prices, Drought Effects

In 2000, food products' operating profit was $7.5 million, compared with $11.3 million in 1999. The primary reasons for the decline were historically low U.S. raw sugar prices and lower raw sugar production that resulted from drought conditions on the island of Maui. In the fourth quarter of 2000, the food products segment had operating profit of $4.6 million, compared with $3.0 million in the fourth quarter of 1999.

Alexander & Baldwin, Inc., headquartered in Honolulu, is engaged in ocean transportation, through its subsidiary, Matson Navigation Company, Inc., in property development and management, 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 that involve a number of risks and uncertainties described on page 29 of the Company's 1999 annual report to shareholders. These factors could cause actual results to differ materially from those projected in the statements.

                       ALEXANDER & BALDWIN, INC.
          2000 and 1999 Fourth-Quarter And Full-Year Results

                                         2000          1999
                                         ----          ----
Three Months Ended December 31:

Revenue(a)                           $261,669,000   $263,584,000
Net Income                            $14,546,000     $5,016,000
Basic & Diluted Share Earnings              $0.36          $0.12
Average Shares Outstanding             40,312,000     42,731,000

Year Ended December 31:

Revenue(a)                         $1,068,646,000   $999,998,000
 Income Before Accounting Change      $78,324,000    $62,579,000
 Net Income                           $90,574,000    $62,579,000
Basic Share Earnings:
 Income Before Accounting Change            $1.92          $1.45
 Net Income                                 $2.21          $1.45
Diluted Share Earnings:
 Income Before Accounting Change            $1.91          $1.45
 Net Income                                 $2.21          $1.45
Average Shares Outstanding             40,898,000     43,206,000

(a) In response to SEC accounting guidance, revenues for 1999 have
    been restated, or "grossed-up," to include, in ocean
    transportation, freight services performed for customers by third
    parties and, in real estate, common area maintenance costs which
    are recovered from tenants. These changes have no effect on
    earnings or segment operating profit.


                   Industry Segment Data, Net Income
                            (In Thousands)

                             Three Months Ended         Year Ended
                                 December 31,           December 31,
                                2000      1999         2000     1999
                                ----      ----         ----     ----
Revenue:
 Ocean Transportation(a)     $ 216,124 $ 211,766 $  850,692 $ 778,535
 Property Devel. & Mgmt.
  Leasing(a)                    16,778    14,622     62,105    53,910
  Sales                          3,848     4,940     46,322    48,036
 Food Products                  24,071    31,279    106,341   116,362
 Other                             848       977      3,186     3,155
                               -------   -------  ---------   -------
  Total Revenue              $ 261,669 $ 263,584 $1,068,646 $ 999,998
                               =======   =======  =========   =======

Operating Profit, Net Income:
 Ocean Transportation        $  19,819 $  18,299 $   93,732 $  83,778
 Property Devel. & Mgmt.
  Leasing                        7,863     6,919     30,120    27,497
  Sales                           (862)      323     24,228    17,402
 Food Products                   4,613     2,992      7,522    11,310
 Other                             756       911      2,974     2,944
                               -------   -------  ---------   -------
  Total Operating Profit        32,189    29,444    158,576   142,931
 Write-down of Long-Lived 
  Assets                            --   (15,410)        --   (15,410)
 Interest Expense               (6,285)   (4,669)   (24,252)  (17,774)
 Corporate Expenses             (3,009)   (3,286)   (11,609)  (14,207)
                               -------   -------  ---------   -------
 Income Before Taxes & 
  Accounting Change             22,895     6,079    122,715    95,540
 Income Taxes                   (8,349)   (1,063)   (44,391)  (32,961)
                               -------   -------  ---------   -------
 Income Before Accounting 
  Change                        14,546     5,016     78,324    62,579
 Cumulative Effect of Acctg. 
  Change                            --        --     12,250        --
                               -------   -------  ---------   -------
 Net Income                  $  14,546 $   5,016 $   90,574 $  62,579
                               =======   =======  =========   =======

(a) In response to SEC accounting guidance, revenues for 1999 have
    been restated, or "grossed-up," to include, in ocean
    transportation, freight services performed for customers by third
    parties and, in real estate, common area maintenance costs which
    are recovered from tenants. These changes have no effect on
    earnings or segment operating profit.


                      Consolidated Balance Sheets
                            (In Thousands)

                               December 31,      December 31,
                                  2000               1999
                                  ----               ----
                               (Unaudited)
ASSETS
Current Assets                $   208,867        $   202,450
Investments                       183,141            158,726
Real Estate Developments           62,628             60,810
Property, Net                     954,692            928,627
Capital Construction Fund         150,405            145,391
Other Assets                      106,279             65,456
                                ---------          ---------
 Total                        $ 1,666,012        $ 1,561,460
                                =========          =========

LIABILITIES & EQUITY
Current Liabilities           $   153,006        $   142,645
Long-Term Debt                    330,766            277,570
Post-Retirement Benefit Obligs.    44,752             60,767
Other Long-Term Liabilities        56,698             51,161
Deferred Income Taxes             387,139            358,354
Shareholders' Equity              693,651            670,963
                                ---------          ---------
 Total                        $ 1,666,012        $ 1,561,460
                                =========          =========


                 Consolidated Statements of Cash Flows
                            (In Thousands)

                                        Year Ended
                                        December 31,
                                  2000               1999
                                  ----               ----
                              (Unaudited)

Operating Cash Flows           $ 108,391          $ 111,799
Capital Expenditures             (84,201)           (68,606)
CCF Deposits, Net                 (3,646)            (8,006)
Proceeds From/
  (Payment of) Debt, Net          61,000            (43,033)
Repurchases Of Capital Stock     (48,260)           (34,824)
Dividends Paid                   (36,785)           (38,899)
All Other, Net                     3,619             (1,916)
                                ---------          ---------
Increase/(Decrease) In Cash    $     118          $ (83,485)
                                =========          =========

Depreciation                   $  72,304          $  73,901
                                =========          =========

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