Tax windfall’s absence hit Matson’s profit

Hawaii ocean cargo transportation firm Matson Inc. increased its revenue last year but earned less profit because of a huge tax benefit the year before.

Matson on Thursday reported earning $109 million last year on $2.2 billion of revenue. That compared with a $232 million profit on $2 billion of revenue a year earlier.

The tax benefit in 2017 was valued at $155 million and was due to the federal Tax Cuts and Jobs Act, passed in late 2017.

Matson’s financial results for last year included a $21 million profit in the fourth quarter that compared with a $167 million profit in the same quarter a year earlier fueled by the same tax benefit contribution.

Honolulu-based Matson said its Hawaii cargo service volume decreased slightly last year. Cargo volumes on routes serving China and Guam also were down. These declines were offset by higher volumes in Alaska, the South Pacific and Japan as well as increased revenue from operations that include ground transportation coordination and cargo handling for shipping customers. Matson also said its revenue was boosted by higher freight rates in China and higher fuel surcharges.

Matson is the largest ocean cargo carrier serving Hawaii. The company said it carried 148,700 containers in its Hawaii service last year, which was down by 0.7 percent, or 1,100 units, from 149,800 containers a year earlier.

Matt Cox, Matson chairman and CEO, said in a statement that the company expects Hawaii cargo volume this year to be about what it was last year. Overall, the company forecasts a “steady” financial performance but lower profit this year, Cox said.

Shares of Matson stock closed Thursday at $35.34 before the earnings announcement. Matson shares over the last 52 weeks have closed between 27.85 on April 9 and $41.18 on Nov. 16.

2018 PROFIT

$109 million

2017 PROFIT

$232 million

ON THE MOVE

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