Matson 2018 sales up 8.6pc to US$2.2 billion, but tax break skews profits
HAWAII's Matson Inc, a Jones Act Pacific ocean carrier, posted a 2018 net profit of US$109 million, down from $232 million in 2017, and drawn on revenue of $2
HAWAII's Matson Inc, a Jones Act Pacific ocean carrier, posted a 2018 net profit of US$109 million, down from $232 million in 2017, and drawn on revenue of $2.2 billion, up 8.6 per cent year on year.
Fourth quarter net profit was $20.6 million in 2018, again down from $166.9 million the previous year, and drawn on revenues of $565 million, up 9.5 per cent year on year.
The anomalous earnings results came about because the US Tax Act was signed into law by US President Donald Trump on December 22, 2017, so the entire effect was seen in the fourth quarter results.
When last year's net income was adjusted downward to cancel out the effect of last year's tax windfall, net income was up for both the full year and fourth quarter, American Shipper reported.
'Our operating performance in the fourth quarter was in line with expectations, with strong demand in our China service and strong execution across all service lines in logistics,' said Matson chairman and CEO Matt Cox.
'For the full year 2018 and the fourth quarter of last year, but profit was lower because of the one-time boost the company had the prior year from the Tax Cuts and Jobs Act of 2017,' he said.
'For the year, we performed well with exceptional performance in our China service and significant contributions from logistics and SSAT - the company's joint venture with Stevedoring Services of America that operates seven terminals - all of which helped propel the company's annual cash flow from operations to a new high,' he said.
Honolulu-based Matson is a public shipping company founded in 1882. It provides shipping services Pacific-wide, but mainly to and from the Hawaiian islands.