A&B Reports Improvement to Net IncomeNovember 10, 2010, 10:05 AM HST · Updated November 10, 10:06 AM 0 Comments
In rough economic times, any reports of gain are met with warm regards; the current state of the economy has left many businesses on Maui, and the mainland as a whole, struggling to stay afloat, with most bringing in dismal quarterly reports that indicate that the business is heading towards or currently embroiled in a profit slump. Alexander & Baldwin Inc. are able to note that they have made improvements in their net income based on third-quarter reports. In fact, their general revenue rose from three hundred and seventy one million dollars to almost four hundred and fifty million dollars.
Alexander & Baldwin Inc., known for its transportation and real estate components, is a company who boasts of its Hawaiian heritage. The founding men, Samuel Thomas Alexander and Henry Perrine Baldwin, were both born and raised in Maui, and then educated on the mainland. In 1869, the two men purchased some land and began growing sugar cane and eventually developed an irrigation system that still exists in Hawaii today. What started out as a one hundred and ten dollar investment has grown to a company with almost three billion dollars in assets.
In its third quarter, Alexander & Baldwin Inc. noted a net income of $25.7 million which was an improvement from its 2009 third quarter statement which noted a net income of $8.5 million. This quarterly figure would indicate that Alexander & Baldwin Inc. experienced a tripling of their net income in only one year, which indicates a strong company with growing potential for a long and healthy financial future.
This increase in profit has been attributed to the higher prices for raw sugar and better growing conditions, which increased production. Although sugar production had been in bad place in 2009, almost resulting in Alexander & Baldwin Inc. leaving the sugar business, its current state indicates that Alexander & Baldwin Inc. made a smart decision by staying.
According to the press release on its web site, Alexander & Baldwin Inc. president and chief executive officer Stanley M. Kuriyama noted that “A&B’s strong performance in China and improved Agribusiness results were again the principal drivers of year-over-year performance. Also noteworthy is the stable performance of our other segments given the current economic environment.”
Mr. Kuriyama also noted that “Solid year-to-date earnings and cash flows, coupled with a strong balance sheet, allowed us to expand Matson’s presence in China and continue investment in our core real estate development projects, laying the groundwork for future performance and shareholder value creation.” Clearly, Mr. Kuriyama has full confidence in his company indicating that Alexander and Baldwin Inc. has a bright future full of exciting and innovative projects that will further increase the economic productivity of the company.
In other Alexander and Baldwin Inc. news, the company was scheduled to present at the Stephens Inc. Fall Investment Conference on November 5th, 2010, further indication of the company’s improvements. Stephens Inc. is a financial services firm founded in 1933 that focuses on helping its clients, as stated by its web site, “as they interact with the financial markets, consider capital formation and preservation, and analyze strategic alternatives.”