Hawaii container volume was down six percent compared to the fourth quarter of 2010, primarily reflecting one additional week in Matson’s 2010 fourth quarter as compared to 2011. Hawaii automobile volume for the quarter was one percent lower than last year, due principally to the timing of automobile rental fleet replacement activity. China container volume increased 13 percent in the fourth quarter of 2011 compared to last year due to an improved supply-demand dynamic for expedited service in the trade. Guam container volume increased 28 percent principally as a result of the departure of Horizon Lines from the trade in mid-November.
Matson’s fourth quarter adjusted operating profit of $14.0 million 1 was $14.8 million lower than 2010, principally due to lower yields and cargo mix due to competitive pricing pressure, primarily in the China trade and by reduced overall volume associated with the extra week recorded in 2010.
|Ocean Transportation – 2011 compared with 2010|
|(dollars in millions)||2011||2010||Change|
|CLX2 shutdown losses included in continuing operations a||7.1||--||NM|
|Adjusted operating profit a||$||81.2||$||118.7||-32||%|
|Operating profit margin||6.9||%||11.7||%|
|Adjusted operating profit margin b||7.5||%||11.7||%|
|Volume (Units) c|
|China containers – CLX1||59,000||60,000||-2||%|
|a Refer to the accompanying disclosures, “Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Measures,” for a discussion of the Company’s use of non-GAAP financial measures and a reconciliation of Ocean Transportation operating profit to adjusted Ocean Transportation operating profit.|
|b Refer to the accompanying disclosures, “Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Measures,” for a discussion of the Company’s use of non-GAAP financial measures and a reconciliation of Ocean Transportation operating profit margin and adjusted Ocean Transportation operating profit margin.|
|c Container volume included for the period is based on the voyage departure date, but revenue and operating profit are adjusted to reflect the percentage of revenue and operating profit earned during the reporting period for voyages that straddle the beginning and/or end of each reporting period.|
Ocean Transportation revenue increased six percent, or $61.1 million, in 2011 compared to 2010. The revenue increase was principally due to higher fuel surcharges resulting from higher fuel prices, as well as net volume growth, principally in Hawaii. These increases were partially offset by lower yields and cargo mix principally in the China trade.
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