UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549


                                    FORM 8-K


                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


       Date of Report (Date of earliest event reported): July 27, 2005

                            ALEXANDER & BALDWIN, INC.
             (Exact name of registrant as specified in its charter)


           Hawaii                          0-565                99-0032630
           ------                          -----                ----------
(State or other jurisdiction of   (Commission File Number)   (I.R.S. Employer
- -------------------------------   ------------------------   ----------------
       incorporation)                                        Identification No.)
       --------------                                        -------------------

                       822 Bishop Street, P. O. Box 3440
                            Honolulu, Hawaii 96801
                            ----------------------
              (Address of principal executive office and zip code)

                                 (808) 525-6611
                                 --------------
              (Registrant's telephone number, including area code)

                                  Not Applicable
                                  --------------
         (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2.):

 _
|_|  Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)
 _
|_|  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     (17 CFR 240.14a-12)
 _
|_|  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))
 _
|_|  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))


Item 2.02. Disclosure of Results of Operations and Financial Condition - ----------------------------------------------------------------------- Alexander & Baldwin, Inc. issued a press release on July 27, 2005, announcing its 2005 second quarter consolidated earnings. This information, attached as Exhibit 99.1, is being furnished to the SEC pursuant to Item 2.02 of Form 8-K. (a) Exhibits -------- 99.1 Press Release announcing 2005 second quarter consolidated earnings issued on July 27, 2005. SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 27, 2005 ALEXANDER & BALDWIN, INC. /s/ Christopher J. Benjamin ------------------------------------ Christopher J. Benjamin Senior Vice President and Chief Financial Officer

For further information, contact:
   John B. Kelley, Vice President
   Phone 808-525-8422
   E-mail: jkelley@abinc.com

                                               HOLD FOR RELEASE:
                                               6:30 P.M. EASTERN DAYLIGHT TIME
                                               Wednesday, July 27, 2005

              A&B REPORTS 2nd QUARTER 2005 NET INCOME OF $29.4 MILLION
              --------------------------------------------------------
             Net Income 2% Lower In 2nd Quarter, 17% Higher In 1st Half

         Honolulu (July 27, 2005)--Alexander & Baldwin, Inc. (NASDAQ:ALEX) today
reported that net income for the second quarter of 2005 was $29,400,000, or
$0.66 per fully diluted share. Net income in the second quarter of 2004 was
$30,100,000, or $0.70 per fully diluted share. Revenue in the second quarter of
2005 was $392,100,000, compared with revenue of $374,400,000 in the second
quarter of 2004.

         Net income for the first half of 2005 was $67,100,000, or $1.52 per
fully diluted share. Net income in the first half of 2004 was $57,200,000, or
$1.33 per fully diluted share. Revenue in the first half of 2005 was
$756,700,000, compared with revenue of $715,600,000 in the first half of 2004.

COMMENTS ON QUARTER & OUTLOOK

         "Although our results for the second quarter are slightly below last
year, due principally to timing of real estate sales, our two primary businesses
are performing quite well," said Allen Doane, president and chief executive
officer of A&B.

         "The second quarter was a good one, with Transportation's operating
profit up 24 percent and this key part of the company on track to have an
exceptional year. Operating profit from real estate sales was down about
two-thirds from strong quarterly performance in 2004, but the nature of this
business segment makes it difficult to rely on quarter-to-quarter comparisons.
Full-year real estate sales results are the benchmark we use, and here we are
confident 2005 will have a favorable result.

         The real estate leasing segment of the business, where quarterly
comparisons are meaningful, achieved a 14 percent increase in operating profit.
Food Products' results were below expectations in the quarter, with little
prospect of improvement for the remainder of the year. In addition, an
impairment loss of $2.2 million before tax was recorded in the quarter for our
minority investment in the C&H sugar refining business, effectively writing it
down to its net realizable value.

         "Several other matters deserve comment," noted Doane. "At Matson, the
competitive situation continues to evolve. Pasha, with one special purpose auto
vessel, entered the Hawaii market late in the first quarter. Matson has
responded to this new competition and will likely increase its competitive
response over time. In Matson's core container carriage business, the MANULANI
was placed into the Hawaii service in June. This ship is the third of four
efficient new vessels, and the first purchased because of Matson's new
Guam/China service. These new ships provide improved operating economics that
will benefit the Hawaii, Guam and China markets.

         "In real estate, there have been several notable events. Initial market
response to our Kukui`ula venture is highly encouraging, and our Kai Malu
venture at Wailea is exceeding expectations. Government approval has just been
received to proceed with development of a 352-unit residential condominium in
Honolulu called Keola La`i. We also have other investments in the pipeline
that should be made public in the next several months.

         "In the near term, all 100 units of our Lanikea high rise are expected
to close in the third quarter, and initial closings at the 247-unit Hokua
condominium venture are now scheduled for January 2006.

         "The Hawaii economy remains vibrant, with little change expected in
the next 6 to 12 months. All in all, our business environment remains favorable.
The outlook for 2005 is excellent, but I would be somewhat cautious about 2006,
as the Guam/China service is initiated, and economic momentum and real estate
may shift into a lower gear."



TRANSPORTATION--OCEAN TRANSPORTATION
- --------------------------------------------------------------------------
                                          Quarter Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                  2005            2004          Change
- --------------------------------------------------------------------------
                                                            
  Revenue                          $ 221.0         $ 208.1            6%
  Operating Profit                 $  38.7         $  31.4           23%
- --------------------------------------------------------------------------
Volume (Units)
- --------------------------------------------------------------------------
  Hawaii Containers                44,300          40,400            10%
  Hawaii Automobiles               43,300          41,600             4%
  Guam Containers                   4,200           4,300            -2%
- --------------------------------------------------------------------------


         For the second quarter of 2005, Ocean Transportation revenue of $221.0
million was $12.9 million, or 6 percent, higher than the second quarter of 2004.
This increase was due to higher Hawaii container volume, improved yields and
cargo mix, and increases in the fuel surcharge necessitated by higher fuel
prices. Total Hawaii container volume was ten percent higher than the second
quarter of 2004, reflecting continuing economic growth in the state. Total
Hawaii automobile volume was 4 percent higher.

         Operating profit of $38.7 million was $7.3 million, or 23 percent,
higher than the second quarter of 2004. This increase was primarily the result
of the higher Hawaii container volume, improved Hawaii and Guam yields and cargo
mix, and lower vessel repairs and operating overhead expenses.

         Matson enjoyed an unusually high operating profit margin in the
quarter, 17.5 percent. A portion of higher-than-normal margin was due to
continuing good performance at SSA Terminals, LLC (SSAT), a stevedoring and
terminal operating company of which Matson is a minority partner. Income from
this investment is included in operating profit, but not in revenue.




- --------------------------------------------------------------------------
                                           Half Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                2005            2004           Change
- --------------------------------------------------------------------------
                                                           
  Revenue                        $ 427.2         $ 404.6              6%
  Operating Profit               $  68.4         $  50.0             37%
- --------------------------------------------------------------------------
Volume (Units)
- --------------------------------------------------------------------------
  Hawaii Containers               85,600          80,100              7%
  Hawaii Automobiles              78,900          77,900              1%
  Guam Containers                  8,200           8,800            - 7%
- --------------------------------------------------------------------------


         For the first half of 2005, Ocean Transportation revenue of $427.2
million was $22.6 million, or 6 percent, higher than the first half of 2004.
This increase also was due to higher Hawaii container volume, improved yields
and cargo mix, and increases in the fuel surcharge necessitated by higher
fuel costs. Total Hawaii container volume was 7 percent higher than the first
half of 2004. Total Hawaii automobile volume was 1 percent higher.

        Operating profit of $68.4 million was $18.4 million, or 37 percent,
higher than the first half of 2004. This increase was primarily the result of
the higher Hawaii container volume, higher earnings from SSAT, improved Hawaii
and Guam yields and cargo mix, lower vessel operating expenses and lower
operating overhead expenses. The majority of the improvement at SSAT resulted
from higher international import volumes and the balance from SSAT's January
fiscal-year-end closing adjustments.

TRANSPORTATION--LOGISTICS SERVICES



- --------------------------------------------------------------------------
                                          Quarter Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                2005            2004          Change
- --------------------------------------------------------------------------
                                                          
  Revenue                        $ 106.6          $ 93.5           14%
  Operating Profit               $   3.6          $  2.6           38%
- --------------------------------------------------------------------------


         Logistics services revenue of $106.6 million was $13.1 million, or 14
percent, higher than the second quarter of 2004. Revenue was higher due to a 4
percent total net increase in volume, with strength in highway volumes,
partially offset by small declines in domestic and intermodal rail volumes.
Rates were higher in all lines.

         Operating profit of $3.6 million was $1.0 million, or 38 percent,
higher than in the comparable period last year. Gross margins were higher in all
lines, offset, in part, by higher G&A and other normal operating expenses.

         The operating profit margin for the logistics services business reached
a record high 3.4 percent in the second quarter of 2005, compared with 2.8
percent for the second quarter of 2004 and the previous high of 3.1 percent in
the first quarter of 2005. The improvement was due to a greater portion of
higher-margin highway volume in the total, and growing economies of scale.



- --------------------------------------------------------------------------
                                          Half Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                2005            2004          Change
- --------------------------------------------------------------------------
                                                          
  Revenue                        $ 202.7         $ 167.6           21%
  Operating Profit               $   6.6         $   3.6           83%
- --------------------------------------------------------------------------


         Logistics services revenue of $202.7 million was $35.1 million, or 21
percent, higher than the first half of 2004. Revenue was higher due to a 9
percent increase in volume, with rises in all lines, and higher rates.

         Operating profit of $6.6 million was $3.0 million, or 83 percent,
higher than in the comparable period last year. Similar to the quarter, gross
margins were higher in all lines, offset, in part, by higher G&A and other
normal operating expenses.

REAL ESTATE--LEASING


- --------------------------------------------------------------------------
                                          Quarter Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                2005            2004          Change
- --------------------------------------------------------------------------
                                                           
  Revenue                         $ 21.3          $ 20.4             4%
  Operating Profit                $ 10.5          $  9.2            14%
- --------------------------------------------------------------------------
Occupancy Rates
- --------------------------------------------------------------------------
  Mainland                           95%             94%             1%
  Hawaii                             92%             90%             2%
- --------------------------------------------------------------------------
Leasable Space (Million sq. ft.)
- -----------------------------------------------------------------------
  Mainland                           3.5             3.7            -5%
- --------------------------------------------------------------------------
  Hawaii                             1.7             1.7            --
- --------------------------------------------------------------------------


         Property Leasing revenue for the second quarter of 2005 (before
removing amounts treated as discontinued operations) of $21.3 million was $0.9
million, or 4 percent, higher than the second quarter of 2004. Operating profit
of $10.5 million was $1.3 million, or 14 percent, higher. The improved revenue
and operating profit resulted primarily from property acquisitions subsequent to
the second quarter of 2004 and higher occupancy rates. A one-time cost incurred
in 2004 for siding repairs to an office building in Honolulu also contributed to
the improvement in operating profit.

         Comparing the periods, there was a small net reduction in the leasable
area on the Mainland. On the Mainland, two leased properties were sold during
the first quarter and one acquired during the second. In Hawaii, one property, a
ground lease of a retail site in Honolulu, was acquired during the first
quarter.



- --------------------------------------------------------------------------
                                          Half Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                2005            2004          Change
- --------------------------------------------------------------------------
                                                           
  Revenue                         $ 43.2          $ 41.2             5%
  Operating Profit                $ 21.2          $ 18.7            13%
- --------------------------------------------------------------------------
Occupancy Rates
- --------------------------------------------------------------------------
  Mainland                           95%             94%             1%
  Hawaii                             91%             90%             1%
- --------------------------------------------------------------------------


         Property Leasing revenue for the first half of 2005 (before removing
amounts treated as discontinued operations) of $43.2 million was $2.0 million,
or 5 percent, higher than the first half of 2004. Operating profit of $21.2
million was $2.5 million, or 13 percent, higher. The improved revenue and
operating profit resulted from property acquisitions subsequent to the first
half of 2004, timing of expenditures for repairs in 2004 to siding on an office
building in Honolulu and lease termination payments received in 2005.


REAL ESTATE--SALES


- --------------------------------------------------------------------------
                                          Quarter Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                2005            2004          Change
- --------------------------------------------------------------------------
                                                          
  Revenue                         $ 14.6          $ 28.3           -48%
  Operating Profit                $  4.8          $ 13.4           -64%
- --------------------------------------------------------------------------


         Property sales revenue in the second quarter of 2005 of $14.6 million
was $13.7 million, or 48 percent, lower than the second quarter of 2004.
Operating profit from property sales of $4.8 million was $8.6 million, or 64
percent, lower than the strong results of the second quarter of 2004. Both
decreases resulted simply from the timing of transactions. Real estate demand in
Hawaii remains high in virtually all areas and all segments of the market.

         Sales during the second quarter of 2005 consisted primarily of the 80
percent balance of an installment sale of a 30-acre development parcel at
Wailea. Sales during the second quarter of 2004 consisted primarily of 13
commercial properties on Maui and Oahu that sold for a total of $8.9 million,
including 11 lots at Mill Town Center on Oahu; three resort residential parcels
at Wailea, including the first 20 percent of the parcel that just closed, that
sold for $13.8 million; one floor in the Alakea Corporate Tower in Honolulu for
$1 million and 5 residential house lots at Wailea, for $4.3 million.



- --------------------------------------------------------------------------
                                          Half Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                2005            2004          Change
- --------------------------------------------------------------------------
                                                          
  Revenue                         $ 60.5          $ 68.4           -12%
  Operating Profit                $ 21.3          $ 32.4           -34%
- --------------------------------------------------------------------------


         Property sales revenue in the first half of 2005 of $60.5 million was
$7.9 million, or 12 percent, lower than the first half of 2004. Again, the
decrease was primarily due to timing, with a large number of sales occurring in
the first half of 2004. Operating profit from property sales of $21.3 million
was $11.1 million, or 34 percent, lower than the strong results of the first
half of 2004.

         In addition to the final installment payment in the second quarter,
sales during the first half of 2005 also consisted primarily of Ontario Pacific
Business Centre, in Ontario, Calif., for $17.8 million; Northwest Business
Center, in San Antonio, Texas, for $6.3 million; 5-1/2 floors at Alakea
Corporate Tower, a Honolulu office condominium, for $5.5 million; an eight-acre
residential resort development parcel at Wailea for $4.5 million; a commercial
development parcel in Waikiki; three residential lots at Wailea Golf Vistas;
three lots at Maui Business Park Phase I and three lots at Mill Town Center on
Oahu.

         In the first half of 2004, sales consisted primarily of 30 commercial
properties on Maui and Oahu that sold for a total of $21.1 million, including 7
lots at Maui Business Park and 20 lots at Mill Town Center on Oahu; three resort
residential parcels at Wailea that sold for a total of $13.8 million; 8-1/2
floors at Alakea Corporate Tower for $9.8 million, and 28 residential lots,
including 26 at Wailea Golf Vistas, for $23.2 million. In addition, 11 sales of
homes at the Kai Lani joint venture on Oahu closed out that project.

         Discontinued operations in the first half of 2005 included the Ontario
Pacific Business Centre and Northwest Business Center, and the fee interest in a
parcel on Maui. They also included the operating results of an office building
on Maui and two office buildings in downtown Honolulu that the Company plans to
sell within the next 12 months. The amounts reported as continuing and
discontinued operations in prior quarters are restated each time a property is
designated as discontinued.

FOOD PRODUCTS


- --------------------------------------------------------------------------
                                          Quarter Ended June 30
- --------------------------------------------------------------------------

Dollars in Millions                2005            2004          Change
- --------------------------------------------------------------------------
                                                          
  Revenue                         $ 32.2          $ 28.9           11%
  Operating Profit                $  0.3          $  0.3            -
- --------------------------------------------------------------------------
Tons Sugar Produced               58,400          53,200           10%
- --------------------------------------------------------------------------


         Food Products revenue in the second quarter of 2005 of $32.2 million
was $3.3 million, or 11 percent, higher than in 2004. The increase reflected
higher sales volume and higher prices of sugar, and higher rates on sales of
electrical power.

         Operating profit of $0.3 million was virtually the same as that of the
second quarter of 2004. The benefits of the higher revenue were offset entirely
by a revised higher cost per ton of sugar. This change was due to a recently
projected decrease in the size of the 2005 sugar crop, combined with higher
operating costs, especially for fuel. HC&S will produce a smaller crop in 2005,
so that future crops have greater age prior to harvesting, offsetting the
cumulative effects of recent droughts, fires and other negative impacts.



- --------------------------------------------------------------------------
                                          Half Ended June 30
- --------------------------------------------------------------------------
Dollars in Millions                2005            2004          Change
- --------------------------------------------------------------------------
                                                          
  Revenue                         $ 54.6          $ 42.3           29%
  Operating Profit                $  9.3          $  2.9           3.2X
- --------------------------------------------------------------------------
Tons Sugar Produced               77,900          64,900           20%
- --------------------------------------------------------------------------


         Food Products revenue in the first half of 2005 of $54.6 million was
$12.3 million, or 29 percent, higher than in 2004. More sugar was sold than in
the year-earlier period, but sales of power were lower. Higher rates boosted
total power sales revenue. Both revenue and operating profit benefited from a
$5.5 million one-time, weather-related federal relief payment received during
the first quarter. Operating profit of $9.3 million was $6.4 million, or 3.2
times, higher than that of the first half of 2004. The majority of the increase
was due to the federal payment.

CORPORATE EXPENSE, OTHER

          For the second quarter of 2005, corporate expenses of $5.2 million
were $0.4 million, or 8 percent, higher than the second quarter of 2004. For the
first six months, corporate expense of $10.5 million is $1.5 million, or 17
percent higher. The increases in both periods were primarily due to increased
amortization of restricted stock grants, increased professional services and
legal expenses, and higher personnel costs, partially offset by lower
Sarbanes-Oxley related costs. An impairment loss of $2.2 million was recorded in
the second quarter, reducing A&B's investment in C&H to its net realizable
value.

BALANCE SHEET, CASH FLOW COMMENTS

         Working capital increased by $57 million since year-end 2004, primarily
due to higher balances of real estate held for sale. The $148 million increase
in Property, Net and the $100 million increase in Long-Term Debt both reflect
primarily the delivery of the new vessel.

         Similarly, comparing the cash flows in the first six months of 2005 and
2004, the $150 million increase in Capital Expenditures and the $121 million
issuance of debt also reflect primarily the delivery of the new ship.

         Alexander & Baldwin, Inc., headquartered in Honolulu, is engaged in
ocean transportation and intermodal services, through its subsidiaries, Matson
Navigation Company, Inc. and Matson Integrated Logistics, Inc.; in real estate,
through A&B Properties, Inc.; and in food products, through Hawaiian Commercial
& Sugar Company and Kauai Coffee Company, Inc. Additional information about
A&B may be found at its web site: www.alexanderbaldwin.com.
                                  -------------------------
         Statements in this press release that are not historical facts are
"forward-looking statements," within the meaning of the Private Securities
Litigation Reform Act of 1995, that involve a number of risks and uncertainties
that could cause actual results to differ materially from those contemplated by
the relevant forward-looking statement. These forward-looking statements are not
guarantees of future performance. This release should be read in conjunction
with our Annual Report on Form 10-K and our other filings with the SEC through
the date of this release, which identify important factors that could affect the
forward-looking statements in this release.




                                   ALEXANDER & BALDWIN, INC.
                                   ------------------------
                    2005 and 2004 Second-Quarter and First-Half Results
                    ---------------------------------------------------


                                                          2005                 2004
                                                          ----                 ----
 Three Months Ended June 30
 --------------------------
                                                                     
 Revenue                                              $392,100,000         $374,400,000
 Income From Continuing Operations                     $29,100,000          $29,000,000
 Discontinued Operations:  Properties(1)                  $300,000           $1,100,000
 Net Income                                            $29,400,000          $30,100,000
 Basic Share Earnings
      Continuing Operations                                  $0.67                $0.68
      Net Income                                             $0.67                $0.71
 Diluted Share Earnings
      Continuing Operations                                  $0.66                $0.67
      Net Income                                             $0.66                $0.70
 Average Shares Outstanding                             43,600,000           42,500,000
 Diluted Average Shares Outstanding                     44,200,000           43,100,000

 Six Months Ended June 30:
 ------------------------
 Revenue                                              $756,700,000         $715,600,000
 Income From Continuing Operations                     $62,500,000          $55,500,000
 Discontinued Operations:  Properties(1)                $4,600,000           $1,700,000
 Net Income                                            $67,100,000          $57,200,000
 Basic Share Earnings
      Continuing Operations                                  $1.44                $1.31
      Net Income                                             $1.54                $1.35
 Diluted Share Earnings
      Continuing Operations                                  $1.42                $1.29
      Net Income                                             $1.52                $1.33
 Average Shares Outstanding                             43,500,000           42,400,000
 Diluted Average Shares Outstanding                     44,100,000           43,000,000

(1) "Discontinued Operations: Properties" consists of sales, or intended sales,
   of certain lands and buildings that are material and have separately
   identifiable earnings and cash flows.



Industry Segment Data, Net Income (In Millions, Except Per Share Amounts, Unaudited) Three Months Ended Six Months Ended ------------------ ---------------- June 30, June 30, -------- -------- 2005 2004 2005 2004 ---- ---- ---- ---- Revenue: - ------- Transportation Ocean Transportation $ 221.0 $ 208.1 $ 427.2 $ 404.6 Logistics Services 106.6 93.5 202.7 167.6 Real Estate Leasing 21.3 20.4 43.2 41.2 Sales 14.6 28.3 60.5 68.4 Less Amounts Reported In Discontinued Operations (1.7) (3.1) (28.1) (5.3) Food Products 32.2 28.9 54.6 42.3 Reconciling Items (1.9) (1.7) (3.4) (3.2) ---------- ---------- ---------- ---------- Total Revenue $ 392.1 $ 374.4 $ 756.7 $ 715.6 ========== ========== ========== ========== Operating Profit, Net Income: - ----------------------------- Transportation Ocean Transportation $ 38.7 $ 31.4 $ 68.4 $ 50.0 Logistics Services 3.6 2.6 6.6 3.6 Real Estate Leasing 10.5 9.2 21.2 18.7 Sales 4.8 13.4 21.3 32.4 Less Amounts Reported In Discontinued Operations (0.6) (1.7) (7.5) (2.7) Food Products 0.3 0.3 9.3 2.9 ---------- ---------- ---------- ---------- Total Operating Profit 57.3 55.2 119.3 104.9 Write-down of C&H (2.2) - (2.2) - Interest Expense (3.0) (3.2) (5.8) (6.4) Corporate Expenses (5.2) (4.8) (10.5) (9.0) ---------- ---------- ---------- ---------- Income From Continuing Operations Before Income Taxes 46.9 47.2 100.8 89.5 Income Taxes (17.8) (18.2) (38.3) (34.0) ---------- ---------- ---------- ---------- Income From Continuing Operations 29.1 29.0 62.5 55.5 Discontinued Operations: Properties 0.3 1.1 4.6 1.7 ---------- ---------- ---------- ---------- Net Income $ 29.4 $ 30.1 $ 67.1 $ 57.2 ========== ========== ========== ========== Basic Earnings Per Share, Continuing Operations $ 0.67 $ 0.68 $ 1.44 $ 1.31 Basic Earnings Per Share, Net Income $ 0.67 $ 0.71 $ 1.54 $ 1.35 Diluted Earnings Per Share, Continuing Operations $ 0.66 $ 0.67 $ 1.42 $ 1.29 Diluted Earnings Per Share, Net Income $ 0.66 $ 0.70 $ 1.52 $ 1.33 Average Shares 43.6 42.5 43.5 42.4 Diluted Shares 44.2 43.1 44.1 43.0

Consolidated Balance Sheets --------------------------- (In Millions) June 30, December 31, -------- ------------ 2005 2004 ---- ---- (Unaudited) ASSETS Current Assets $ 358 $ 288 Investments 130 111 Real Estate Developments 56 82 Property, Net 1,281 1,133 Capital Construction Fund 37 40 Other Assets 127 124 ----------- ----------- Total $ 1,989 $ 1,778 =========== =========== LIABILITIES & EQUITY Current Liabilities $ 248 $ 235 Long-Term Debt 314 214 Post-Retirement Benefit Obligs. 46 45 Other Long-Term Liabilities 38 41 Deferred Income Taxes 388 339 Shareholders' Equity 955 904 ----------- ----------- Total $ 1,989 $ 1,778 =========== =========== Consolidated Statements of Cash Flows ------------------------------------- (In Millions) Six Months Ended ---------------- June 30, -------- 2005 2004 ---- ---- (Unaudited) Operating Cash Flows $ 127 $ 84 Capital Expenditures (174) (24) CCF Withdrawals/(Deposits), Net (12) - Proceeds From Issuance of (Payment of) Debt, Net 90 (31) Dividends Paid (20) (19) All Other, Net 16 5 ----------- ----------- Increase/(Decrease) In Cash $ 27 $ 15 =========== =========== Depreciation $ (41) $ (40) =========== =========== #####