Hawaii-based Alexander & Baldwin, Inc. (NYSE: ALEX) on Friday reported that net income for the second quarter of 2009 was $12.6 million, down from $29.6 million for the same period in 2008.
Revenue fell as well, from $460.5 million to $355.1 million.
Net income for the first half of 2009 was $15.6 million, compared with $71.7 million in the first half of 2008.
Revenue for the same period was $674.5 million, compared to revenue of $1,038.7 million in the first half of 2008.
A&B is the parent company of Matson Navigation Co.
“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 W. Allen Doane, chairman and CEO of A&B. “These improvements were partially offset, however, by poor performance in our Agribusiness division, as well as the pervasive impacts of the national and global recession. In response to the difficult economic environment, we have taken necessary measures this year to better align our cost structure with the realities of today’s lower levels of demand. These efforts are producing tangible results.”
Doane said A&B remained on “solid financial ground” and is generating “significant cash flow” from its operating business.
But he warned of “choppy earnings results” for the remainder of 2009.
A&B’s real estate leasing segment saw an operating profit of $11 million in the second quarter — the result of strong occupancy levels for A&B’s Hawaii properties — while the real estate sales segment posted an operating profit of $9.6 million, “resulting from the sale of Hawaii income properties and several Maui land parcels during the quarter,” according to the company.
“As previously announced, in late May the company increased its investment at the Kukuiula joint venture development project, a statement of our confidence in Hawaii development, and to the unique opportunity presented by this project to capture rising buyer demand as real estate markets recover over time,” said Doane.
Kukuiula is a luxury home project on Kauai.
Source: http://www.bizjournals.com
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