Joseph Bonney, Senior Editor | Aug 02, 2012 4:58PM EDT
Matson Inc. said its second quarter operating income rose while net income was hurt by charges from discontinued operations and costs related to the company’s June 29 separation from longtime parent Alexander & Baldwin.
The ocean carrier and logistics provider’s net income for the quarter ended June 30 was $7.8 million, compared with $18.7 million a year earlier.
The latest quarter’s numbers included $4.8 million in after-tax separation costs, a 50 percent effective tax rate due to separation items, and a $7.5 million net loss from discontinued operations.
Operating income rose 11.3 percent to $32.5 million, including $5.8 million in costs related to the separation from A&B. Income from continuing operations fell to $15.3 million, including $4.8 million in separation costs, from $17.7 million.
Revenue rose 4.5 percent to $394.2 million.
Ocean transportation revenue increased 9.2 percent, primarily because of increased business to Guam, a market competitor Horizon Lines exited last fall. Matson’s ocean transportation profit rose 15.1 percent to $31.2 million.
Matson Logistics revenue fell 6.8 percent to $59.2 million. The segment’s operating profit tumbled 38.1 percent to $1.3 million, hurt by lower profitability in warehousing and lower highway and international intermodal revenue.
“While we are reporting improved operating income for the second quarter compared with last year, the financial performance of our businesses continues to be mixed, with weaker Hawaii volume more than offset by improved volume in Guam and improved freight rates in China,” President and CEO Matt Cox said.
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