Matson Announces Fourth Quarter Income

The Matson barge MV Maunalei. Photo courtesy of Matson.

By Maui Now Staff

Matson Inc. (NYSE: MATX), a leading US freight carrier in the Pacific Ocean, has reported a $.63 earning per share, or $27.8 million net income for the fourth quarter of 2014. In comparison, the last quarter of 2013 saw a $.17 earning per share and net income of $7.3 million.

Matson reported a consolidated revenue for the fourth quarter of 2014 of $443.5 million, up from $410.9 million in the foruth quarter of 2013. Fourth quarter earnings in 2013 were negatively impacted by a litigation charge of $.14 per share following a $4.6 million expenditure in legal fees and penalties for the September 2013 molasses spill in Honolulu Harbor.

For the full year of 2014, Matson reported a net income of $70.8 million, or a $1.63 earning per share, up from $53.7 million, or $1.25 earning per share for 2013. Consolidated revenue for the full year of 2014 was reported at $1,714.2 million, compared with $1,637.2 million for 2013.

Matson President and Chief Executive Officer Matt Cox commented: “2014 was a good year for Matson, punctuated by a strong fourth quarter. Performance improved in all of our business lines, buoyed by demand for our expedited China service, modest market growth in Hawaiʻi and Guam, and continued improvements in Logistics operations and SSAT. The sharp decline in bunker fuel prices also had a positive timing impact on our results, as fuel surcharge collections outpaced fuel expenditures late in the third quarter and continued into the fourth quarter. For the full year, we generated $165.7 million of cash flow from operations, of which $27.9 million was used for capital expenditures and the remainder of $137.8 million provided free cash flow per share of $3.18.”

Cox stated that 2015 posed both an opportunity and challenge for the company.

“We are excited to enter the Alaska trade once we close our pending transaction with Horizon Lines and also expect our Logistics group to improve on a good 2014 result,” Cox said. “However, new vessel capacity is expected to enter our core Hawaiʻi market in the first half of the year and ongoing port congestion on the US West Coast is testing our cargo handling capabilities. Overall, we expect to deliver 2015 operating results that are modestly higher than the solid results posted in 2014. Further, we expect our core business platforms to continue to generate significant cash flow to comfortably sustain our dividend. Our balance sheet remains in good shape, which will provide the foundation for our pending Alaska acquisition and the funding of the construction of our new Aloha-class vessels. We are encouraged by our prospects and ready for the year ahead.”