News Releases
News Releases
Net income for the first half of 2009 was
COMMENTS ON QUARTER
“A&B’s second quarter 2009 performance improved considerably from the first quarter of the year – principally as a result of Matson’s return to profitability, and, to a lesser extent, increased real estate sales,” said
“The Company remains on solid financial ground and is generating significant cash flow from its operating businesses. We have reduced our debt levels since year-end 2008, maintained our dividend, and reduced capital spending to appropriate levels while keeping ample liquidity and debt capacity for future investments and growth.”
“And while our cost alignment actions have been effective, we expect choppy earnings results for the remainder of 2009. Our performance in the balance of the year will be restrained by the impact of previously reported non-cash increases in pension expense, ongoing volume pressure at Matson and MIL, low shipping rates in the Trans-Pacific trade lane and suppressed real estate markets. Our heavy losses in Agribusiness have compelled a comprehensive evaluation of the Company’s sugar operation, which is expected to be completed by year-end.”
“The Ocean Transportation segment earned
“Matson Integrated Logistics posted operating earnings of
“As previously communicated, sugar production levels have been adversely impacted by the effects of the unprecedented drought in 2007-08, which will be most pronounced in 2009. The production decline has led to an operating loss of
“Our
“Real Estate Sales posted operating profit of
TRANSPORTATION—OCEAN TRANSPORTATION
Quarter Ended June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 218.5 | $ | 268.4 | -19 | % | |||||
Operating profit | $ | 21.1 | $ | 37.4 | -44 | % | |||||
Operating profit margin | 9.7 | % | 13.9 | % | |||||||
Volume (Units) | |||||||||||
Hawaii containers | 34,300 | 39,000 | -12 | % | |||||||
Hawaii automobiles | 27,200 | 23,600 | 15 | % | |||||||
China containers | 11,100 | 12,700 | -13 | % | |||||||
Guam containers | 3,600 | 3,600 | -- | % | |||||||
For the second quarter of 2009, revenue decreased 19 percent from the year earlier period due to lower fuel surcharges, net volume decreases and lower rates in the
Six Months Ended June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 419.6 | $ | 511.4 | -18 | % | |||||
Operating profit | $ | 20.6 | $ | 53.3 | -61 | % | |||||
Operating profit margin | 4.9 | % | 10.4 | % | |||||||
Volume (Units) | |||||||||||
Hawaii containers | 66,800 | 76,900 | -13 | % | |||||||
Hawaii automobiles | 41,600 | 49,200 | -15 | % | |||||||
China containers | 20,700 | 24,400 | -15 | % | |||||||
Guam containers | 7,000 | 7,000 | -- | % | |||||||
For the first half of 2009, Ocean Transportation revenue decreased, principally due to the same factors cited for the second quarter. Container volume decreases also were due to the same factors cited for the quarter. Auto volume declined in total in the first half of the year due principally to the economic downturn, despite a second quarter volume increase related to the timing of rental fleet shipments. Operating profit for the first six months of 2009 decreased by 61 percent, primarily due to lower volume, higher operating and terminal handling costs, headcount reduction expenses, higher dry dock costs and higher non-cash pension expense. Improved yields, lower fuel costs, and cost containment initiatives, including improved equipment control and fleet management efforts, partially offset reductions in operating profit.
TRANSPORTATION—LOGISTICS SERVICES
Quarter Ended June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Intermodal revenue | $ | 46.8 | $ | 73.3 | -36 | % | |||||
Highway revenue | 33.5 | 42.2 | -21 | % | |||||||
Total Revenue | $ | 80.3 | $ | 115.5 | -30 | % | |||||
Operating profit | $ | 1.8 | $ | 4.6 | -61 | % | |||||
Operating profit margin | 2.2 | % | 4.0 | % | |||||||
Logistics Services revenue for the second quarter of 2009 was 30 percent, or
Six Months Ended June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Intermodal revenue | $ | 91.3 | $ | 138.3 | -34 | % | |||||
Highway revenue | 65.2 | 79.8 | -18 | % | |||||||
Total Revenue | $ | 156.5 | $ | 218.1 | -28 | % | |||||
Operating profit | $ | 3.3 | $ | 9.3 | -65 | % | |||||
Operating profit margin | 2.1 | % | 4.3 | % | |||||||
For the first half of 2009, logistics revenue and gross margins decreased as a result of principally the same factors cited for the quarter. Intermodal and Highway volume decreased by 25 and 16 percent, respectively, in the first half of 2009 as compared to the first half of 2008. Operating profit and volume decreases were due to the same factors cited for the quarter.
REAL ESTATE—INDUSTRY
Real estate leasing and sales revenue and operating profit are analyzed before discontinued operations are removed. This is consistent with how the Company evaluates and makes investment, disposition and capital allocation decisions.
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 typically 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 June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 25.9 | $ | 27.3 | -5 | % | |||||
Operating profit | $ | 11.0 | $ | 12.6 | -13 | % | |||||
Operating profit margin | 42.5 | % | 46.2 | % | |||||||
Occupancy Rates: | |||||||||||
Mainland | 84 | % | 96 | % | -12 | % | |||||
Hawaii | 95 | % | 99 | % | -4 | % | |||||
Leasable Space (million sq. ft.): | |||||||||||
Mainland | 7.1 | 5.9 | 20 | % | |||||||
Hawaii | 1.3 | 1.3 | -- | % | |||||||
In
|
Six Months Ended June 30, |
||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 53.1 | $ | 56.1 | -5 | % | |||||
Operating profit | $ | 23.0 | $ | 26.5 | -13 | % | |||||
Operating profit margin | 43.3 | % | 47.2 | % | |||||||
Occupancy Rates: | |||||||||||
Mainland | 87 | % | 96 | % | -9 | % | |||||
Hawaii | 95 | % | 99 | % | -4 | % | |||||
For the first half of 2009, real estate leasing revenue and operating profit decreased by 5 percent and 13 percent respectively, from the year earlier period. Revenue was lower due to the non-recurrence of a
REAL ESTATE—SALES
Quarter Ended June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Improved property sales | $ | 13.1 | $ | 12.1 | 8 | % | |||||
Development sales | 2.5 | 18.1 | -86 | % | |||||||
Unimproved/other property sales | 5.7 | 1.0 | 6 | X | |||||||
Total revenue | $ | 21.3 | $ | 31.2 | -32 | % | |||||
Operating profit /(loss) before joint ventures | $ | 9.4 | $ | 7.4 | 27 | % | |||||
Earnings from joint ventures | 0.2 | 1.7 | -88 | % | |||||||
Total operating profit | $ | 9.6 | $ | 9.1 | 5 | % | |||||
Second quarter 2009 Real Estate Sales revenue was
Six Months Ended June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Improved property sales | $ | 33.2 | $ | 12.1 | 3 | X | |||||
Development sales | 2.9 | 204.6 | -99 | % | |||||||
Unimproved/other property sales | 10.4 | 1.9 | 5 | X | |||||||
Total revenue | $ | 46.5 | $ | 218.6 | -79 | % | |||||
Operating profit before joint ventures | $ | 15.0 | $ | 32.9 | -54 | % | |||||
Gain on insurance settlement | -- | 7.7 | NM | ||||||||
Equity in earnings of joint ventures | 0.2 | 9.9 | -98 | % | |||||||
Total operating profit | $ | 15.2 | $ | 50.5 | -70 | % | |||||
For the first half of 2009, revenue was substantially lower than from the same period in 2008, principally as a result of extensive sales at Keola La’i in the first quarter of 2008. Operating profit was
AGRIBUSINESS
Quarter Ended June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 29.2 | $ | 36.2 | -19 | % | |||||
Operating loss | $ | (11.3 | ) | $ | (4.9 | ) | NM | ||||
Tons sugar produced | 43,300 | 50,100 | -14 | % | |||||||
Second quarter 2009 Agribusiness revenue declined
Six Months Ended June 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 46.9 | $ | 58.7 | -20 | % | |||||
Operating loss | $ | (13.2 | ) | $ | (0.1 | ) | NM | ||||
Tons sugar produced | 55,500 | 64,400 | -14 | % | |||||||
In the first half of 2009, Agribusiness revenues and operating profit decreased significantly compared to the first half of 2008, for the reasons cited above.
CORPORATE EXPENSE
Second quarter 2009 corporate expenses of
CONDENSED CASH FLOW TABLE
Year-to-Date June 30, | |||||||||||
(dollars in millions, unaudited) | 2009 | 2008 | Change | ||||||||
Cash Flow from Operating Activities | $ | 46 | $ | 181 | -75 | % | |||||
Capital Expenditures (1) | |||||||||||
Transportation | (9 | ) | (16 | ) | -44 | % | |||||
Real Estate | (8 | ) | (49 | ) | -84 | % | |||||
Agribusiness and other | (2 | ) | (10 | ) | -80 | % | |||||
Total Capital Expenditures | (19 | ) | (75 | ) | -75 | % | |||||
Other Investing Activities, Net | 22 | (14 | ) | NM | |||||||
Cash Provided by/(Used in) Investing Activities | $ | 3 | $ | (89 | ) | NM | |||||
Net Debt Proceeds/(Payments) | (30 | ) | (18 | ) | 67 | % | |||||
Repurchase of Capital Stock | -- | (50 | ) | NM | |||||||
Dividends Paid | (26 | ) | (25 | ) | 4 | % | |||||
Other Financing Activities, Net | -- | 4 | NM | ||||||||
Cash Provided by/(Used in) Financing Activities | $ | (56 | ) | $ | (89 | ) | -37 | % | |||
Net (Decrease) Increase in Cash | $ | (7 | ) | $ | 3 | NM | |||||
(1) Excludes non-cash 1031 exchange 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 Second-Quarter and First-Half Results (Condensed) | ||||||
(In Millions, Except Per Share Amounts, Unaudited) | ||||||
|
2009 |
2008 |
||||
Three Months Ended June 30: |
||||||
Revenue | $ | 355.1 | $ | 460.5 | ||
Income From Continuing Operations | $ | 6.2 | $ | 24.1 | ||
Discontinued Operations: Properties1 | $ | 6.4 | $ | 5.5 | ||
Net Income | $ | 12.6 | $ | 29.6 | ||
Basic Earnings Per Share | ||||||
Continuing Operations | $ | 0.15 | $ | 0.58 | ||
Net Income | $ | 0.31 | $ | 0.72 | ||
Diluted Earnings Per Share | ||||||
Continuing Operations | $ | 0.15 | $ | 0.58 | ||
Net Income | $ | 0.31 | $ | 0.71 | ||
Basic Weighted Average Shares Outstanding | 41.0 | 41.2 | ||||
Diluted Weighted Average Shares Outstanding | 41.0 | 41.6 | ||||
2009 |
2008 |
|||||
Six Months Ended June 30: |
||||||
Revenue | $ | 674.5 | $ | 1,038.7 | ||
Income From Continuing Operations | $ | 3.6 | $ | 64.4 | ||
Discontinued Operations: Properties1 | $ | 12.0 | $ | 7.3 | ||
Net Income | $ | 15.6 | $ | 71.7 | ||
Basic Earnings Per Share | ||||||
Continuing Operations | $ | 0.09 | $ | 1.56 | ||
Net Income | $ | 0.38 | $ | 1.74 | ||
Diluted Earnings Per Share | ||||||
Continuing Operations | $ | 0.09 | $ | 1.55 | ||
Net Income | $ | 0.38 | $ | 1.72 | ||
Basic Weighted Average Shares Outstanding | 41.0 | 41.3 | ||||
Diluted Weighted Average Shares Outstanding | 41.0 | 41.6 | ||||
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, Net Income (Condensed) | ||||||||||||||||
(In Millions, Except Per Share Amounts, Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30 |
June 30 |
|||||||||||||||
Revenue: |
2009 |
2008 |
2009 |
2008 |
||||||||||||
Transportation | ||||||||||||||||
Ocean Transportation | $ | 218.5 | $ | 268.4 | $ | 419.6 | $ | 511.4 | ||||||||
Logistics Services | 80.3 | 115.5 | 156.5 | 218.1 | ||||||||||||
Real Estate | ||||||||||||||||
Leasing | 25.9 | 27.3 | 53.1 | 56.1 | ||||||||||||
Sales | 21.3 | 31.2 | 46.5 | 218.6 | ||||||||||||
Less Amounts Reported In Discontinued Operations | (17.3 | ) | (15.5 | ) | (43.0 | ) | (20.0 | ) | ||||||||
Agribusiness | 29.2 | 36.2 | 46.9 | 58.7 | ||||||||||||
Reconciling Items | (2.8 | ) | (2.6 | ) | (5.1 | ) | (4.2 | ) | ||||||||
Total Revenue | $ | 355.1 | $ | 460.5 | $ | 674.5 | $ | 1,038.7 | ||||||||
Operating Profit, Net Income: |
||||||||||||||||
Transportation | ||||||||||||||||
Ocean Transportation | $ | 21.1 | $ | 37.4 | $ | 20.6 | $ | 53.3 | ||||||||
Logistics Services | 1.8 | 4.6 | 3.3 | 9.3 | ||||||||||||
Real Estate | ||||||||||||||||
Leasing | 11.0 | 12.6 | 23.0 | 26.5 | ||||||||||||
Sales | 9.6 | 9.1 | 15.2 | 50.5 | ||||||||||||
Less Amounts Reported In Discontinued Operations | (10.3 | ) | (8.9 | ) | (19.5 | ) | (11.8 | ) | ||||||||
Agribusiness | (11.3 | ) | (4.9 | ) | (13.2 | ) | (0.1 | ) | ||||||||
Total Operating Profit | 21.9 | 49.9 | 29.4 | 127.7 | ||||||||||||
Interest Expense | (6.9 | ) | (5.6 | ) | (12.5 | ) | (11.7 | ) | ||||||||
General Corporate Expenses | (4.5 | ) | (5.4 | ) | (10.6 | ) | (11.1 | ) | ||||||||
Income From Continuing Operations Before Income Taxes | 10.5 | 38.9 | 6.3 | 104.9 | ||||||||||||
Income Taxes | 4.3 | 14.8 | 2.7 | 40.5 | ||||||||||||
Income From Continuing Operations | 6.2 | 24.1 | 3.6 | 64.4 | ||||||||||||
Income from Discontinued Operations(net of income taxes) | 6.4 | 5.5 | 12.0 | 7.3 | ||||||||||||
Net Income | $ | 12.6 | $ | 29.6 | $ | 15.6 | $ | 71.7 | ||||||||
Basic Earnings Per Share, Continuing Operations | $ | 0.15 | $ | 0.58 | $ | 0.09 | $ | 1.56 | ||||||||
Basic Earnings Per Share, Net Income | $ | 0.31 | $ | 0.72 | $ | 0.38 | $ | 1.74 | ||||||||
Diluted Earnings Per Share, Continuing Operations | $ | 0.15 | $ | 0.58 | $ | 0.09 | $ | 1.55 | ||||||||
Diluted Earnings Per Share, Net Income | $ | 0.31 | $ | 0.71 | $ | 0.38 | $ | 1.72 | ||||||||
Basic Weighted Average Shares Outstanding | 41.0 | 41.2 | 41.0 | 41.3 | ||||||||||||
Diluted Weighted Average Shares Outstanding | 41.0 | 41.6 | 41.0 | 41.6 | ||||||||||||
Consolidated Balance Sheet (Condensed) | |||||||
(In Millions, Unaudited) | |||||||
June 30, |
December 31, |
||||||
2009 |
2008 |
||||||
ASSETS | |||||||
Current Assets | $ | 264 | $ | 284 | |||
Investments | 213 | 208 | |||||
Real Estate Developments | 84 | 78 | |||||
Property, Net | 1,586 | 1,590 | |||||
Other Assets | 175 | 190 | |||||
Total | $ | 2,322 | $ | 2,350 | |||
LIABILITIES & EQUITY | |||||||
Current Liabilities | $ | 235 | $ | 238 | |||
Long-Term Debt, Non-Current Portion | 442 | 452 | |||||
Liability for Benefit Plans | 126 | 122 | |||||
Other Long-Term Liabilities | 53 | 52 | |||||
Deferred Income Taxes | 411 | 414 | |||||
Shareholders’ Equity | 1,055 | 1,072 | |||||
Total | $ | 2,322 | $ | 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