Matson delivers double profit but isle cargo volume flat

Matson Inc. doubled its profit in the first quarter despite bringing about the same number of shipping containers to Hawaii.

The Honolulu-­based ocean cargo transportation firm reported earning $14.2 million in the first three months of this year, up from $7 million in the same period last year.

Revenue rose 8 percent to $511.4 million from $474.4 million in the same period.

Much of the profit gain was from Matson’s part ownership in a company that provides stevedoring and terminal services at seven West Coast ports. Matson’s share of operating profit in the firm, SSA Terminals LLC, was $10.5 million in the first quarter compared with $4.9 million a year earlier.

Another Matson operation, which coordinates ground transportation, warehousing and other ancillary cargo services, also more than doubled its operating profit to $4.2 million in the first quarter from $1.9 million a year earlier.

Matson, which released its earnings report Tuesday, additionally benefited from the timing of fuel surcharges, lower vessel operating costs and 10 percent higher container volume in Alaska partly due to a competitor taking a ship out of service for maintenance.

“Matson is off to a good start to this year,” Matt Cox, company chairman and CEO, said in a statement.

Several parts of Matson’s business didn’t do as well, including cargo shipping in Hawaii, China and Guam.

Matson delivered 35,700 containers in its Hawaii serv­ice in the first quarter, down 2 percent from 36,400 a year earlier. The company said the dip was from volume leaving Hawaii and that volume to Hawaii was essentially flat.

Automobile deliveries in Matson’s Hawaii service jumped 22 percent to 16,800 vehicles in the first quarter from 13,800 a year earlier, though Matson has previously said that this business is marginal.

In China, cargo volume fell 22 percent to 11,900 containers in the first quarter from 15,300 a year earlier. Matson said the decline was partly because there were two fewer ship sailings to China in the recent quarter, and noted that its average China freight rates were moderately higher in the first quarter compared with a year earlier.

In Guam, competition ate into Matson’s business, and container volume fell 9 percent to 4,900 in the first quarter compared with 5,400 a year earlier.

Shares of Matson stock closed Tuesday before the earnings announcement at $29.46, roughly midway between the stock’s 52-week high and low points of $37.68 on Jan. 29 and $22.79 on Aug. 18.