A big income tax cut helped Hawaii’s largest ocean cargo transportation firm, Matson Inc., produce 36 percent more profit in the second quarter.
Honolulu-based Matson announced Tuesday that it earned $32.6 million in the April-June period compared with $24 million in last year’s second quarter.
The $8.6 million gain was driven mainly by an income tax break instituted by President Donald Trump at the beginning of this year. Matson reported paying $8.8 million in income taxes in the second quarter, down from $15.6 million a year earlier.
Matson also earned more from a division it calls “logistics” which arranges ground transportation services for customers. The company said its operating income from this line of business rose to $9.5 million in the second quarter from $7 million a year earlier.
| SECOND-QUARTER NET
$32.6 million
YEAR-EARLIER NET
$24 million
|
For Matson’s core ocean cargo transportation operations, delivery volumes were either flat or down across the company’s biggest trade lanes of Hawaii, China, Alaska and Guam.
Hawaii cargo volume was unchanged at 38,600 containers, while the number of Hawaii automobile shipments slipped 3 percent to 16,000 vehicles from 16,500 vehicles in the year-over-year quarters.
In Alaska, Matson cargo volume slipped 0.6 percent to 17,400 containers in the second quarter from 17,500 containers a year earlier.
Cargo volume in Matson’s China service declined 5.9 percent to 15,900 containers from 16,900 containers in the same period.
And in Guam container volume dropped 11.1 percent to 4,800 containers from 5,400 containers.
Because of higher rates largely in Hawaii and China as well as fuel surcharges and a new Okinawa service, Matson took in more revenue from its ocean transportation operations. But operating income was lower due to higher terminal handling costs and lower revenue on Guam, the company said.
Total revenue from ocean transportation and logistics operations rose to $557 million in the second quarter from $513 million a year earlier.
Matt Cox, Matson chairman and CEO, in a statement described the company’s overall financial performance as “solid” based on fairly steady ocean transportation results and the gain in logistics operations.
Shares of Matson stock closed Tuesday at $36 on the New York Stock Exchange before the earnings announcement. That was a little below a 52-week high of $39.20 on July 2 and far above a 52-week low of $22.79 on Aug. 18.
