Friday, August 9, 2019

Matson Reports Mixed Quarter

By Karen Robes Meeks

Honolulu-based carrier Matson, Inc. this week reported net income of $18.4 million, or $0.43 per diluted share, for the quarter that ended June 30.

That’s lower than the second quarter that ended June 30, 2018, when the net income was $32.6 million, or $0.76 per diluted share.

Meanwhile, consolidated revenue for the second quarter 2019 was $557.9 million, up from $557.1 million for the second quarter 2018.

"Our performance in the second quarter was mixed, with Ocean Transportation operating income coming in below expectations and Logistics posting stronger-than-expected operating income,” said Matson Chairman and Chief Executive Officer Matt Cox. “Within Ocean Transportation, we performed as expected across most of our trade lanes, except we saw a weaker-than-expected Hawaii market, and we were negatively impacted by a lower contribution from SSAT primarily driven by additional expense related to the early adoption of the new lease accounting standard, which we expect to reverse in the second half of this year, and higher terminal operating costs,” he said. “Within our Logistics segment, we continued to perform well with positive contributions to operating income across all service lines."

Cox also said 2019 will be viewed as a “transition year and remain confident about achieving the approximately $30 million in previously-mentioned annual financial benefits from the new vessels.”