Americas News
Matson Profits Drop on Bunker Surcharge Timing
U.S. Pacific Ocean carrier Matson Inc. (Matson) reports a 63 percent year-over-year drop in profits in the first quarter of 2014 to $3.4 million as the timing of bunker surcharge collections affected its results.
The company's ocean transportation revenue fell by $5.3 million to $294.6 million, mostly due to lower fuel surcharge revenue, lower container volume in Hawaii and lower freight rates for its China routes.
"Our businesses performed as we anticipated in the first quarter of 2014, driven by sustained demand in our core markets and continued freight rate strength in all of our markets," said President and CEO Matt Cox.
"And while the timing of fuel surcharge collections significantly impacted financial results during this quarter, our businesses are running well and continue to generate substantial cash flow."
Cox said the company's revenues and debt financing will allow it to easily fund its newbuild commitments while pursuing "growth opportunities."
For the full year the company anticipates operating income for its Ocean Transportation division "near or slightly above" 2013's $104.3 million.
In February, Matson announced the first increase to its bunker surcharge since 2012 after emissions rules in the North American Emissions Control Area (ECA) raised its fuel costs.
