Americas News
Matson Profit Jumps Despite Lower Fuel Surcharges
With volumes increasing on all its trade lanes, ocean transport and logistics company Matson Inc. [NYSE: MATX] (Matson) reports it increased its profit 158 percent to $20.1 million in the second quarter of 2013 as revenues rose 5.7 percent to $416.6 million.
Matson's ocean transportation revenue grew 3.5 percent to $10.5 million for the quarter as it transported more cargo on Micronesia/South Pacific and Hawaii routes, but gains were partially offset by lower fuel surcharges as bunker prices fell, as well as a decrease in China trade freight rates.
The company announced in March that it was decreasing its bunker surcharge by 3.5 percentage points.
"We had another solid quarter, driven by continuing strength in our Hawaii trade, modest volume gains in our other trade lanes and a better result in Logistics," said President and CEO Matt Cox.
"As we look to the balance of this year, we expect overall results to modestly exceed the results achieved in the second half of 2012, reflecting a full year cycle of limited economic recovery in the markets we serve."
The big year-over-year jump in profits was partly due to a $7.5 million loss from discontinued operations that the company recorded in Q2 2012 after separating from its parent company, Alexander and Baldwin (A&B).
