News Releases
News Releases
COMMENTS ON QUARTER
“Our financial performance for the first quarter of 2009 was negatively impacted by the deepening national and international economic contraction. Increased weakness in our transportation segments, slower sales and leasing activity in our real estate businesses and increased non-cash pension expenses combined to significantly decrease earnings. Despite these factors, and various workforce restructuring costs of over
“While earnings declined considerably from the year earlier period, the preponderance of first quarter 2008 earnings was driven by real estate sales at a single project. In addition, the severity of the drop in freight volume at Matson Navigation has no modern parallel. In
“Matson has taken a number of measures to reduce its cost structure for these lower volumes but it takes time for these actions to produce tangible results. Other business units at A&B are also engaged in cost reduction programs. Equally important, we are extending our reach to grow our businesses - Matson will extend its market presence in
“The Ocean Transportation segment posted an operating loss of
“At Matson Integrated Logistics (MIL), accelerated weakness in domestic freight movement, coupled with a dramatic drop in international intermodal demand stemming from lower import and export activity, resulted in reduced earnings of
“Our Agribusiness segment posted an operating loss of
“Real Estate Leasing posted operating profit of
“Our Real Estate Sales segment posted operating profit of
“I am also pleased to announce that today the Board of Directors declared a quarterly dividend of
TRANSPORTATION—OCEAN TRANSPORTATION |
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Quarter Ended March 31, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 201.1 | $ | 243.0 | -17 | % | |||||
Operating profit before restructuring costs | $ | 5.5 | $ | 15.9 | -65 | % | |||||
Restructuring costs | $ | (6.0 | ) | $ | -- |
NM |
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Total operating profit (loss) | $ | (0.5 | ) | $ | 15.9 |
NM |
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Operating profit margin | -0.2 | % | 6.5 | % | |||||||
Volume (Units) | |||||||||||
Hawaii containers | 32,500 | 37,900 | -14 | % | |||||||
Hawaii automobiles | 14,400 | 25,600 | -44 | % | |||||||
China containers | 9,600 | 11,700 | -18 | % | |||||||
Guam containers | 3,400 | 3,400 | -- | % | |||||||
For the first quarter of 2009, lower container volume in the
TRANSPORTATION—LOGISTICS SERVICES |
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Quarter Ended March 31, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Intermodal revenue | $ | 44.5 | $ | 65.0 | -32 | % | |||||
Highway revenue | 31.7 | 37.6 | -16 | % | |||||||
Total Revenue | $ | 76.2 | $ | 102.6 | -26 | % | |||||
Operating profit | $ | 1.5 | $ | 4.7 | -68 | % | |||||
Operating profit margin | 2.0 | % | 4.6 | % | |||||||
First quarter 2009 Logistics Services revenue of
REAL ESTATE—INDUSTRY
REAL ESTATE—LEASING
The Company regularly makes dispositions of commercial properties from its leasing portfolio and land under ground leases or vacant land parcels and subsequently reinvests proceeds, on a tax-deferred basis, in new properties. As a result, the Company often incurs higher depreciation expenses attributable to a step-up in the cost basis of its properties or to the replacement of formerly non-depreciable property with depreciable property. Further, due to the inherent timing lag between disposition and reinvestment, the Company incurs modest loss of revenue and income in these interim periods.
Quarter Ended March 31, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 27.2 | $ | 28.8 | -6 | % | |||||
Operating profit | $ | 12.0 | $ | 13.9 | -14 | % | |||||
Operating profit margin | 44.1 | % | 48.3 | % | |||||||
Occupancy Rates: | |||||||||||
Mainland | 90 | % | 96 | % | -6 | % | |||||
Hawaii | 95 | % | 98 | % | -3 | % | |||||
Leasable Space (million sq. ft.): | |||||||||||
Mainland | 7.1 | 5.2 | 37 | % | |||||||
Hawaii | 1.4 | 1.4 | -- | % | |||||||
During the quarter, the Company sold its Southbank office building (
REAL ESTATE—SALES |
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Quarter Ended March 31, | ||||||||||
(dollars in millions) | 2009 | 2008 | Change | |||||||
Improved property sales | $ | 20.1 | $ | -- |
NM |
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Development sales | 0.4 | 186.5 |
NM |
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Unimproved/other property sales | 4.7 | 0.9 |
5X |
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Total revenue | $ | 25.2 | $ | 187.4 | -87 | % | ||||
Operating profit before joint ventures | $ | 5.6 | $ | 25.5 | -78 | % | ||||
Gain on insurance settlement | -- | 7.7 |
NM |
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Earnings from joint ventures | -- | 8.2 |
NM |
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Total operating profit | $ | 5.6 | $ | 41.4 | -86 | % | ||||
First quarter 2009 Real Estate Sales revenues and operating profit were significantly lower than the same period from a year earlier, due principally to revenue and profit from the closing of 300 units at the Company’s Keola La’i project in the first quarter of 2008. First quarter 2008 operating profit additionally included a non-recurring gain of
AGRIBUSINESS
The operating results of the Agribusiness segment are dependent on a number of factors, particularly weather conditions, which affect yields, volume of hydro-electric generation, planting, harvesting, and factory operations, as well as regulatory rulings. Consequently, operating results from the Agribusiness segment will vary from period to period and year to year.
Quarter Ended March 31, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 17.7 | $ | 22.5 | -21 | % | |||||
Operating profit (loss) | $ | (1.9 | ) | $ | 4.8 |
NM |
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Operating profit (loss) margin | -10.7 | % | 21.3 | % | |||||||
Tons sugar produced | 12,200 | 14,200 | -14 | % | |||||||
Agribusiness revenue for the first quarter of 2009 decreased 21 percent due primarily to lower power revenue resulting from lower prices and volume. Operating profit decreased by
CORPORATE EXPENSE, OTHER
First quarter 2009 corporate expenses of
CONDENSED CASH FLOW TABLE |
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Year-to-Date March 31, | ||||||||
(dollars in millions, unaudited) | 2009 | 2008 | ||||||
Cash Flow from Operating Activities | $ | 8 | $ | 160 | ||||
Capital Expenditures (1) | ||||||||
Transportation | (6 | ) | (4 | ) | ||||
Real Estate | (8 | ) | (46 | ) | ||||
Agribusiness and other | (2 | ) | (5 | ) | ||||
Total Capital Expenditures | (16 | ) | (55 | ) | ||||
Other Investing Activities, Net | 24 | 1 | ||||||
Cash From (Used in) Investing Activities | $ | 8 | $ | (54 | ) | |||
Net Debt Proceeds (Payments) | (11 | ) | 33 | |||||
Repurchase of Capital Stock | (1 | ) | (50 | ) | ||||
Dividends Paid | (13 | ) | (12 | ) | ||||
Other Financing Activities, Net | -- | 1 | ||||||
Cash Used in Financing Activities | $ | (25 | ) | $ | (28 | ) | ||
Net (Decrease) Increase in Cash | (9 | ) | 78 | |||||
(1) Excludes non-cash 1031 transactions and real estate development activity.
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
ALEXANDER & BALDWIN, INC. | |||||||
2009 and 2008 Consolidated First-Quarter Results (Condensed) | |||||||
(In Millions, Except Per Share Amounts, Unaudited) | |||||||
2009 |
2008 |
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Three Months Ended March 31: |
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Revenue | $ | 319.9 | $ | 578.7 | |||
Income (Loss) From Continuing Operations | $ | (2.0 | ) | $ | 40.5 | ||
Discontinued Operations: Properties1 | $ | 5.0 | $ | 1.6 | |||
Net Income | $ | 3.0 | $ | 42.1 | |||
Basic Earnings (Loss) per Share: | |||||||
Continuing Operations | $ | (0.05 | ) | $ | 0.98 | ||
Net Income | $ | 0.07 | $ | 1.02 | |||
Diluted Earnings (Loss) per Share: | |||||||
Continuing Operations | $ | (0.05 | ) | $ | 0.97 | ||
Net Income | $ | 0.07 | $ | 1.01 | |||
Weighted Average Basic Shares Outstanding | 41.0 | 41.4 | |||||
Weighted Average Diluted Shares Outstanding | 41.0 | 41.7 | |||||
1 “Discontinued Operations: Properties” consists of sales, or intended sales, of certain lands and buildings that are material and have separately identifiable earnings and cash flows.
Industry Segment Data (Condensed) | ||||||||
(In Millions, Except Per Share Amounts, Unaudited) | ||||||||
Three Months Ended |
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March 31, |
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2009 |
2008 |
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Revenue: |
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Transportation | ||||||||
Ocean Transportation | $ | 201.1 | $ | 243.0 | ||||
Logistics Services | 76.2 | 102.6 | ||||||
Real Estate | ||||||||
Leasing | 27.2 | 28.8 | ||||||
Sales | 25.2 | 187.4 | ||||||
Less Amounts Reported In Discontinued Operations | (25.2 | ) | (4.1 | ) | ||||
Agribusiness | 17.7 | 22.5 | ||||||
Reconciling Items | (2.3 | ) | (1.5 | ) | ||||
Total Revenue | $ | 319.9 | $ | 578.7 | ||||
Operating Profit, Net Income (Loss): |
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Transportation | ||||||||
Ocean Transportation | $ | (0.5 | ) | $ | 15.9 | |||
Logistics Services | 1.5 | 4.7 | ||||||
Real Estate | ||||||||
Leasing | 12.0 | 13.9 | ||||||
Sales | 5.6 | 41.4 | ||||||
Less Amounts Reported In Discontinued Operations | (8.8 | ) | (2.5 | ) | ||||
Agribusiness | (1.9 | ) | 4.8 | |||||
Total Operating Profit | 7.9 | 78.2 | ||||||
Interest Expense | (5.6 | ) | (6.1 | ) | ||||
General Corporate Expenses | (6.1 | ) | (5.7 | ) | ||||
Income (Loss) From Continuing Operations | ||||||||
Before Income Taxes | (3.8 | ) | 66.4 | |||||
Income Tax (Benefit) Expense | 1.8 | (25.9 | ) | |||||
Income (Loss) From Continuing Operations | (2.0 | ) | 40.5 | |||||
Income from Discontinued Operations | 5.0 | 1.6 | ||||||
Net Income | $ | 3.0 | $ | 42.1 | ||||
Basic Earnings (Loss) Per Share, Continuing Operations | $ | (0.05 | ) | $ | 0.98 | |||
Basic Earnings Per Share, Net Income | $ | 0.07 | $ | 1.02 | ||||
Diluted Earnings (Loss) Per Share, Continuing Operations | $ | (0.05 | ) | $ | 0.97 | |||
Diluted Earnings Per Share, Net Income | $ | 0.07 | $ | 1.01 | ||||
Weighted Average Basic Shares Outstanding | 41.0 | 41.4 | ||||||
Weighted Average Diluted Shares Outstanding | 41.0 | 41.7 | ||||||
Condensed Consolidated Balance Sheet | ||||||||
(In Millions) | ||||||||
March 31, |
December 31, |
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2009 |
2008 |
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(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | $ | 267 | $ | 284 | ||||
Investments in Affiliates | 212 | 208 | ||||||
Real Estate Developments | 79 | 78 | ||||||
Property, Net | 1,613 | 1,590 | ||||||
Employee Benefit Plan Assets | 3 | 3 | ||||||
Other Assets | 153 | 187 | ||||||
Total | $ | 2,327 | $ | 2,350 | ||||
LIABILITIES & EQUITY | ||||||||
Current Liabilities | $ | 209 | $ | 238 | ||||
Long-Term Debt | 460 | 452 | ||||||
Liability for Benefit Plans | 127 | 122 | ||||||
Other Long-Term Liabilities | 52 | 52 | ||||||
Deferred Income Taxes | 417 | 414 | ||||||
Shareholders’ Equity | 1,062 | 1,072 | ||||||
Total | $ | 2,327 | $ | 2,350 |
Source:
Alexander & Baldwin, Inc.
For media inquiries:
Meredith J. Ching, 808-525-6669
mching@abinc.com
For investor relations inquiries:
Kevin L. Halloran, 808-525-8422
khalloran@abinc.com