Sliding volumes at Matson cut into first quarter earnings

 

THE parent company of Matson Navigation Co, Alexander & Baldwin, Inc (A&B), has announced a first quarter net profit of US$3 million, marking a decline of 92.6 per cent against the same period in 2008 when the company earned $42.1 million.

The group's ocean container suffered a loss of $500,000 during the first three months of the year, with the Hawaii liner business falling 14 per cent, the China service down 18 per cent and auto shipments plummeting 44 per cent compared to the same three months last year, reports American Shipper.

Matson has taken a number of measures to reduce its cost structure for these lower volumes but it takes time for these actions to produce tangible results, said A&B chairman and chief executive W Allen Doane.

Mr Doane said restructuring costs for the liner business, including trimming 15 per cent of its non-union workforce, amounted to $6 million, meaning the carrier's operating profit outside of those costs was $5.5 million.

In response to the steeper than expected declines in volume, in late March we successfully transitioned from a 10-ship to a nine-ship fleet deployment to reduce operating costs, and in May we will add a port of call in Xiamen to enhance our market presence, he added in the report.

Source: Schednet