Alexander & Baldwin (AXB) Sees Negative Impact to Q1 Financials

March 20, 2009 4:08 PM EDT

Alexander & Baldwin, Inc. (NYSE: AXB) expects Q1 2009 performance to be negatively impacted by increased weakness in its transportation segments and by workforce reduction restructuring costs. Net income is expected to approximate break-even in the quarter, and is expected to include two commercial property sales currently in escrow and a workforce restructuring charge of $5-6 million. These results may be further impacted by market conditions and the timing of the aforementioned property sales. (Q1 EPS consensus is $0.35)

"...Through the first two months of the year, however, cargo demand and freight movement have been lower than expected. Matson Navigation's eastbound volume from China and westbound volume to Hawaii, for example, are off 20 and 12 percent, respectively, from 2008 levels. In addition, the Company's Logistics volume is down 24 percent through February, as its intermodal volume has dropped significantly, driven by lower import and export activity and related inland rail movements."

"In anticipation of these earnings challenges, we took deliberate steps to strengthen our cost and capital structure. We are reducing our non-union workforce by approximately 10 percent, which is expected to save about $8 million annually. We have pared $50 million from our 2009 capital budget of $325 million..."

Alexander & Baldwin is engaged in ocean transportation and logistics services through its subsidiaries, Matson Navigation Company, Inc., Matson Integrated Logistics, Inc. and Matson Global Distribution Services; in real estate through A&B Properties, Inc.; and in food products through Hawaiian Commercial & Sugar Company and Kauai Coffee Company, Inc.[SM]

Related Categories

Guidance

Stocks Mentioned

Related Entities

• Layoffs
• Life, Style and Real Estate

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?