News Releases
News Releases
Net income for the first nine months of 2009 was
COMMENTS ON QUARTER
"Market conditions continue to affect the Company's core transportation and real estate businesses. Results for the third quarter were mixed, with
"In response to the difficult economic environment, we have taken necessary measures across all of the business units to better align our cost structure with the realities of today's conditions. These efforts are producing tangible results."
"The Company remains on solid financial ground and our core operating units continue to generate significant cash flow augmented by a multitude of cost reduction programs and reduced capital spending. As a result, we have trimmed outstanding debt by
"The Ocean Transportation segment earned
"Matson Integrated Logistics posted operating earnings of
"Our Agribusiness segment posted a significant loss of
"Real Estate Leasing achieved operating profit of
"Real Estate Sales posted operating profit of
"Finally, our Board of Directors recently declared a quarterly dividend of
TRANSPORTATION—OCEAN TRANSPORTATION
Quarter Ended September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 234.2 | $ | 272.8 | -14 | % | |||||
Operating profit | $ | 24.2 | $ | 31.4 | -23 | % | |||||
Operating profit margin | 10.3 | % | 11.5 | % | |||||||
Volume (Units) | |||||||||||
Hawaii containers | 35,100 | 39,900 | -12 | % | |||||||
Hawaii automobiles | 21,200 | 21,800 | -3 | % | |||||||
China containers | 12,400 | 12,300 | 1 | % | |||||||
Guam containers | 3,500 | 3,600 | -3 | % | |||||||
For the third quarter of 2009, revenue decreased 14 percent from the year earlier period due to lower fuel surcharges, net volume decreases and lower rates in the
Nine Months Ended September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 653.8 | $ | 784.2 | -17 | % | |||||
Operating profit | $ | 44.8 | $ | 84.7 | -47 | % | |||||
Operating profit margin | 6.9 | % | 10.8 | % | |||||||
Volume (Units) | |||||||||||
Hawaii containers | 101,900 | 116,800 | -13 | % | |||||||
Hawaii automobiles | 62,800 | 71,000 | -12 | % | |||||||
China containers | 33,100 | 36,700 | -10 | % | |||||||
Guam containers | 10,500 | 10,600 | - 1 | % | |||||||
For the first nine months of 2009, Ocean Transportation revenue decreased 17 percent, principally due to the same factors cited for the third quarter.
TRANSPORTATION—LOGISTICS SERVICES
Quarter Ended September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Intermodal revenue | $ | 48.2 | $ | 73.9 | -35 | % | |||||
Highway revenue | 34.1 | 44.2 | -23 | % | |||||||
Total Revenue | $ | 82.3 | $ | 118.1 | -30 | % | |||||
Operating profit | $ | 2.2 | $ | 5.1 | -57 | % | |||||
Operating profit margin | 2.7 | % | 4.3 | % | |||||||
Logistics Services revenue for the third quarter of 2009 was 30 percent, or
Nine Months Ended September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Intermodal revenue | $ | 139.5 | $ | 212.2 | -34 | % | |||||
Highway revenue | 99.3 | 124.0 | -20 | % | |||||||
Total Revenue | $ | 238.8 | $ | 336.2 | -29 | % | |||||
Operating profit | $ | 5.5 | $ | 14.4 | -62 | % | |||||
Operating profit margin | 2.3 | % | 4.3 | % | |||||||
For the first nine months of 2009, Logistics Services revenue and gross margins decreased as a result of principally the same factors cited for the quarter. Intermodal and Highway volume decreased by 23 and 10 percent, respectively, in the first nine months of 2009 as compared to the first nine months of 2008. Operating profit and volume decreases were due to the same factors cited for the quarter.
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 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 September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 25.2 | $ | 26.2 | -4 | % | |||||
Operating profit | $ | 10.2 | $ | 11.1 | -8 | % | |||||
Operating profit margin | 40.5 | % | 42.4 | % | |||||||
Occupancy Rates: | |||||||||||
Mainland | 83 | % | 95 | % | -12 | % | |||||
Hawaii | 95 | % | 98 | % | -3 | % | |||||
Leasable Space (million sq. ft.): | |||||||||||
Mainland | 7.1 | 5.9 | 20 | % | |||||||
Hawaii | 1.4 | 1.3 | 8 | % | |||||||
Leasable space increased by a net 1.3 million square feet as compared to the third quarter of 2008, due to the net effect of several acquisitions and dispositions throughout the preceding year and to the placement in service of several industrial properties after the third quarter of 2008 with large gross leasable areas. Two industrial properties placed into service account for approximately one half of the 12 percent year-over-year decline in occupancy rates. Industrial property vacancies affect occupancy levels disproportionately in relation to revenue, operating profit and net operating income, as this asset class generally has significantly lower rental rates per square foot.
Nine Months Ended September 30, |
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(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 78.3 | $ | 82.3 | -5 | % | |||||
Operating profit | $ | 33.2 | $ | 37.6 | -12 | % | |||||
Operating profit margin | 42.4 | % | 45.7 | % |
|
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Occupancy Rates: | |||||||||||
Mainland | 86 | % | 96 | % | -10 | % | |||||
Hawaii | 95 | % | 98 | % | -3 | % | |||||
For the first nine months of 2009, real estate leasing revenue and operating profit decreased by 5 percent and 12 percent respectively, from the year earlier period. Revenue was lower due to the non-recurrence of a
REAL ESTATE—SALES
Quarter Ended September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Improved property sales | $ | 8.3 | $ | 61.2 | -86 | % | |||||
Development sales | 2.3 | 7.1 | -68 | % | |||||||
Unimproved/other property sales | 4.3 | 8.9 | -52 | % | |||||||
Total revenue | $ | 14.9 | $ | 77.2 | -81 | % | |||||
Operating profit before joint ventures | $ | 3.2 | $ | 25.5 | -87 | % | |||||
Earnings from joint ventures | 0.3 | 0.3 | -- | % | |||||||
Total operating profit | $ | 3.5 | $ | 25.8 | -86 | % | |||||
Third quarter 2009 Real Estate Sales revenue was
Nine Months Ended September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Improved property sales | $ | 41.5 | $ | 73.3 | -43 | % | |||||
Development sales | 5.2 | 211.8 | -98 | % | |||||||
Unimproved/other property sales | 14.7 | 10.7 | 37 | % | |||||||
Total revenue | $ | 61.4 | $ | 295.8 | -79 | % | |||||
Operating profit before joint ventures | $ | 18.2 | $ | 66.0 | -72 | % | |||||
Equity in earnings of joint ventures | 0.5 | 10.3 | -95 | % | |||||||
Total operating profit | $ | 18.7 | $ | 76.3 | -75 | % | |||||
For the first nine months 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 and the previously described commercial property sales. Operating profit was 75 percent lower in the first nine months of 2009 as compared to 2008, principally due to 2008 Keola La'i sales, and 2008 joint venture income related to sales at the Company's
AGRIBUSINESS
Quarter Ended September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 32.5 | $ | 37.5 | -13 | % | |||||
Operating loss | $ | (13.8 | ) | $ | (6.7 | ) | -2 | X | |||
Operating profit margin | -42.5 | % | -17.9 | % | |||||||
Tons sugar produced | 53,700 | 50,500 | 6 | % | |||||||
Third quarter 2009 Agribusiness revenue declined
Nine Months Ended September 30, | |||||||||||
(dollars in millions) | 2009 | 2008 | Change | ||||||||
Revenue | $ | 79.4 | $ | 96.2 | -17 | % | |||||
Operating loss | $ | (27.0 | ) | $ | (6.8 | ) | -4 | X | |||
Operating profit margin | -34.0 | % | -7.1 | % | |||||||
Tons sugar produced | 109,200 | 114,800 | -5 | % | |||||||
In the first nine months of 2009, Agribusiness revenues decreased and operating loss increased, significantly, compared to the first nine months of 2008, for primarily the same reasons cited for the quarter. Power revenues and attendant operating profit were also adversely impacted in the first nine months of the year, as compared to the prior year, by an unfavorable third quarter 2008
CORPORATE EXPENSE
Corporate expenses of
CONDENSED CASH FLOW TABLE
Year-to-Date September 30, | |||||||||||
(dollars in millions, unaudited) | 2009 | 2008 | Change | ||||||||
Cash Flow from Operating Activities | $ | 78 | $ | 202 | -61 | % | |||||
Capital Expenditures (1) | |||||||||||
Transportation | (11 | ) | (29 | ) | -62 | % | |||||
Real Estate | (12 | ) | (51 | ) | -76 | % | |||||
Agribusiness and other | (4 | ) | (11 | ) | -64 | % | |||||
Total Capital Expenditures | (27 | ) | (91 | ) | -70 | % | |||||
Other Investing Activities, Net | 19 | (49 | ) | NM | |||||||
Cash Used in Investing Activities | $ | (8 | ) | $ | (140 | ) | -94 | % | |||
Net Debt Proceeds/(Payments) | (33 | ) | 17 | NM | |||||||
Repurchase of Capital Stock | -- | (50 | ) | NM | |||||||
Dividends Paid | (39 | ) | (38 | ) | 3 | % | |||||
Other Financing Activities, Net | (1 | ) | 2 | NM | |||||||
Cash Used in Financing Activities | $ | (73 | ) | $ | (69 | ) | 6 | % | |||
Net Decrease in Cash | $ | (3 | ) | $ | (7 | ) | -57 | % | |||
(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 Third-Quarter and Nine Month Results (Condensed) (In Millions, Except Per Share Amounts, Unaudited) |
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2009 |
2008 |
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Three Months Ended September 30: |
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Revenue | $ | 375.9 | $ | 456.2 | ||
Income From Continuing Operations | $ | 6.1 | $ | 19.3 | ||
Discontinued Operations: Properties1 | $ | 2.4 | $ | 17.5 | ||
Net Income | $ | 8.5 | $ | 36.8 | ||
Basic Earnings Per Share | ||||||
Continuing Operations | $ | 0.15 | $ | 0.47 | ||
Net Income | $ | 0.06 | $ | 0.42 | ||
Diluted Earnings Per Share | ||||||
Continuing Operations | $ | 0.15 | $ | 0.46 | ||
Net Income | $ | 0.06 | $ | 0.43 | ||
Basic Weighted Average Shares Outstanding | 41.0 | 41.3 | ||||
Diluted Weighted Average Shares Outstanding | 41.2 | 41.5 | ||||
2009 |
2008 |
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Nine Months Ended September 30: |
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Revenue | $ | 1,049.8 | $ | 1,494.5 | ||
Income From Continuing Operations | $ | 10.1 | $ | 83.5 | ||
Discontinued Operations: Properties1 | $ | 14.0 | $ | 25.0 | ||
Net Income | $ | 24.1 | $ | 108.5 | ||
Basic Earnings Per Share | ||||||
Continuing Operations | $ | 0.25 | $ | 2.02 | ||
Net Income | $ | 0.34 | $ | 0.61 | ||
Diluted Earnings Per Share | ||||||
Continuing Operations | $ | 0.25 | $ | 2.01 | ||
Net Income | $ | 0.34 | $ | 0.60 | ||
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) |
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Three Months Ended |
Nine Months Ended |
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September 30 |
September 30 |
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Revenue: |
2009 |
2008 |
2009 |
2008 |
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Transportation | ||||||||||||||||
Ocean Transportation | $ | 234.2 | $ | 272.8 | $ | 653.8 | $ | 784.2 | ||||||||
Logistics Services | 82.3 | 118.1 | 238.8 | 336.2 | ||||||||||||
Real Estate | ||||||||||||||||
Leasing | 25.2 | 26.2 | 78.3 | 82.3 | ||||||||||||
Sales | 14.9 | 77.2 | 61.4 | 295.8 | ||||||||||||
Less Amounts Reported In Discontinued Operations | (10.2 | ) | (72.6 | ) | (53.8 | ) | (93.1 | ) | ||||||||
Agribusiness | 32.5 | 37.5 | 79.4 | 96.2 | ||||||||||||
Reconciling Items | (3.0 | ) | (3.0 | ) | (8.1 | ) | (7.1 | ) | ||||||||
Total Revenue | $ | 375.9 | $ | 456.2 | $ | 1,049.8 | $ | 1,494.5 | ||||||||
Operating Profit, Net Income: |
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Transportation | ||||||||||||||||
Ocean Transportation | $ | 24.2 | $ | 31.4 | $ | 44.8 | $ | 84.7 | ||||||||
Logistics Services | 2.2 | 5.1 | 5.5 | 14.4 | ||||||||||||
Real Estate | ||||||||||||||||
Leasing | 10.2 | 11.1 | 33.2 | 37.6 | ||||||||||||
Sales | 3.5 | 25.8 | 18.7 | 76.3 | ||||||||||||
Less Amounts Reported In Discontinued Operations | (4.0 | ) | (28.4 | ) | (23.7 | ) | (40.6 | ) | ||||||||
Agribusiness | (13.8 | ) | (6.7 | ) | (27.0 | ) | (6.8 | ) | ||||||||
Total Operating Profit | 22.3 | 38.3 | 51.5 | 165.6 | ||||||||||||
Interest Expense | (6.7 | ) | (5.8 | ) | (19.2 | ) | (17.5 | ) | ||||||||
General Corporate Expenses | (4.9 | ) | (5.3 | ) | (15.5 | ) | (16.4 | ) | ||||||||
Income From Continuing Operations Before Income Taxes | 10.7 | 27.2 | 16.8 | 131.7 | ||||||||||||
Income Taxes | 4.6 | 7.9 | 6.7 | 48.2 | ||||||||||||
Income From Continuing Operations | 6.1 | 19.3 | 10.1 | 83.5 | ||||||||||||
Income from Discontinued Operations (net of income taxes) |
2.4 | 17.5 | 14.0 | 25.0 | ||||||||||||
Net Income | $ | 8.5 | $ | 36.8 | $ | 24.1 | $ | 108.5 | ||||||||
Basic Earnings Per Share, Continuing Operations | $ | 0.15 | $ | 0.47 | $ | 0.25 | $ | 2.02 | ||||||||
Basic Earnings Per Share, Net Income | $ | 0.21 | $ | 0.89 | $ | 0.59 | $ | 2.63 | ||||||||
Diluted Earnings Per Share, Continuing Operations | $ | 0.15 | $ | 0.46 | $ | 0.25 | $ | 2.01 | ||||||||
Diluted Earnings Per Share, Net Income | $ | 0.21 | $ | 0.89 | $ | 0.59 | $ | 2.61 | ||||||||
Basic Weighted Average Shares Outstanding | 41.0 | 41.3 | 41.0 | 41.3 | ||||||||||||
Diluted Weighted Average Shares Outstanding | 41.2 | 41.5 | 41.0 | 41.6 | ||||||||||||
Consolidated Balance Sheet (Condensed) (In Millions, Unaudited) |
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September 30, |
December 31, |
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2009 |
2008 |
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ASSETS | |||||||
Current Assets | $ | 281 | $ | 284 | |||
Investments | 219 | 208 | |||||
Real Estate Developments | 85 | 78 | |||||
Property, Net | 1,605 | 1,590 | |||||
Other Assets | 141 | 190 | |||||
Total | $ | 2,331 | $ | 2,350 | |||
LIABILITIES & EQUITY | |||||||
Current Liabilities | $ | 259 | $ | 238 | |||
Long-Term Debt, Non-Current Portion | 412 | 452 | |||||
Liability for Benefit Plans | 128 | 122 | |||||
Other Long-Term Liabilities | 53 | 52 | |||||
Deferred Income Taxes | 413 | 414 | |||||
Shareholders' Equity | 1,066 | 1,072 | |||||
Total | $ | 2,331 | $ | 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