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Matson profit up 25.7pc, but results marred by molasses spill fine

MATSON, a leading American carrier in the Pacific, posted a year-on-year third quarter net profit increase of 25.7 per cent to US$21.5 million year on year, drawn on revenues of $441.8 million, up 6.5 per cent.

Matson profit up 25.7pc, but results marred by molasses spill fine
07 November 2014 - 22:43

Matson profit up 25.7pc, but results marred by molasses spill fine

MATSON, a leading American carrier in the Pacific, posted a year-on-year third quarter net profit increase of 25.7 per cent to US$21.5 million year on year, drawn on revenues of $441.8 million, up 6.5 per cent.

Quarterly operating profit was up 67.7 per cent operating income of $42.6 million from ocean transport, but this was marred by fines from last year's molasses spill in Honolulu Harbour and an adverse arbitration ruling.

For the nine-month period ending September 30, the Honolulu-based Matson reported net income of $43 million drawn on revenues of $1.27 billion, up four per cent.

"The Hawaii economy is showing increased vibrancy, and we are earning our share of this growth," said Matson president and CEO Matt Cox. 

"We had a strong third quarter this year, the result of a rebound in container carriage in our core Hawaii market, timing of fuel surcharge recoveries, higher freight yields and continuing improvements at logistics," he said. 

But Mr. Cox conceded the company has "incurred several unfavourable items in the third quarter of last year which affected year-over-year comparisons".

He was referring to a $2.1 million fine and other expenses related to the molasses spill in Honolulu Harbour in September 2013. 

In addition, there was "an adverse arbitration decision of $3.8 million related to previously co-owned Guam terminal assets and a $2.2 million tax allocation item related to the company’s separation from Alexander & Baldwin Inc". 

In the fourth quarter, Matson expects continued market growth in the Hawaii trade, "modestly higher" than the fourth quarter of 2013. 

"A competitor is expected to launch new containership capacity into the Hawaii trade early in 2015, and therefore, is not expected to impact for the remainder of 2014," said the company statement. 

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