Alexander & Baldwin, Inc. (NYSE:ALEX) today reported adjusted net income for 2011 of $74.3 million, or $1.77 per diluted share 1, which excludes operating and shut down losses related to Matson’s second China-Long Beach service (CLX2) that was discontinued in the third quarter, and net income of $34.2 million, or $0.81 per diluted share. These results compared to 2010 adjusted net income of $104.2 million, or $2.51 per diluted share 1, and net income of $92.1 million, or $2.22 per diluted share, respectively. Revenue for 2011 was $1.7 billion, compared to revenue of $1.6 billion for 2010.
The fourth quarter results were marked by a continued weak Transpacific operating environment, which suppressed Matson’s first China-Long Beach service (CLX1) earnings; one less week of Hawaii container volume recorded by Matson compared to last year; a non-cash reduction in the carrying value of a 2006 Oahu real estate joint venture; and, in contrast to the fourth quarter of last year, the absence of any material property sales. Adjusted net income for the fourth quarter of 2011 excluding CLX2 operating and shut down losses was $4.6 million, or $0.11 per diluted share 1, and net income was $1.6 million, or $0.04 per diluted share. These results compare to fourth quarter 2010 adjusted net income of $31.0 million, or $0.74 per diluted share 1, and net income of $20.2 million, or $0.48 per diluted share, respectively. Revenue for the fourth quarter of 2011 was $460.2 million, compared to revenue of $437.6 million in the same period of 2010.
“The diverse markets and economies in which we operate affected our various lines of business in different ways in 2011. Container volume in Matson’s Hawaii trade lane has benefitted from a gradually improving Hawaii economy, and our Mainland commercial property portfolio’s improved performance reflects the beginnings of a national economic recovery. Our Agribusiness segment has continued to deliver strong performance, driving significant earnings with continued improvement in sugar yields and factory performance, and favorable sugar prices and power margins,” said Stanley M. Kuriyama, A&B president and chief executive officer. “In contrast, a difficult Transpacific container freight rate environment—one in which carriers incurred heavy losses in 2011—significantly impacted the performance of our CLX1 service; however, even under these adverse conditions, CLX1’s double head haul and premium service allowed it to remain profitable. Weakness in the Transpacific trade lane also negatively affected volume for our SSAT joint venture, reducing overall results for the year,” Kuriyama noted.