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): January 29,
2009
ALEXANDER
& BALDWIN, INC.
(Exact
name of registrant as specified in its charter)
|
Hawaii
|
000-00565
|
99-0032630
|
|
(State or other jurisdiction of
incorporation)
|
(Commission File Number)
|
(I.R.S. Employer
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.):
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
|
Item
2.02. Results of Operations and Financial
Condition.
Alexander & Baldwin, Inc.
issued a press release on February 4, 2009, announcing its 2008 fourth quarter
and full year consolidated earnings. This information, attached as
Exhibit 99.1, is being furnished to the SEC pursuant to Item 2.02 of
Form 8-K.
Item
2.03. Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant.
On April 20, 2006, Alexander &
Baldwin, Inc. (“A&B”) entered into a three-year unsecured note purchase and
private shelf agreement, dated as of April 19, 2006, (“Agreement”) with
Prudential Investment Management, Inc., The Prudential Insurance Company of
America, Prudential Retirement Insurance and Annuity Company, Gibraltar Life
Insurance Co., Ltd., and The Prudential Insurance Company, Ltd. (individually
and collectively, “Prudential”) under which A&B may issue notes to
Prudential in an aggregate amount up to $400,000,000 less the sum of all
principal amounts then outstanding on any notes issued by A&B or any of its
subsidiaries to Prudential and the amount of any such notes then committed to be
purchased by Prudential. The Agreement is more fully described in an
8-K filed with the Securities and Exchange Commission on April 21,
2006.
On January 29, 2009, A&B
committed to a fourth series of senior promissory notes, Series D notes,
totaling $100 million. The funding date for the draw under the facility will be
at A&B’s discretion, but must occur by March 9, 2009. The notes carry
interest at an annual fixed rate of 6.9 percent with a final maturity on March
9, 2020. Interest will be paid semi-annually, commencing in September 2009, and
the principal under the note will be repaid in annual installments commencing in
March 2012 according to the following schedule (in millions):
|
Principal
|
||||
|
Payments
|
||||
|
2012
|
$
|
10.00
|
||
|
2013
|
5.00
|
|||
|
2014
|
5.00
|
|||
|
2015
|
5.00
|
|||
|
2016
|
10.00
|
|||
|
2017
|
16.25
|
|||
|
2018
|
16.25
|
|||
|
2019
|
16.25
|
|||
|
2020
|
16.25
|
|||
|
Total
|
$
|
100.00
|
Item
9.01. Financial Statements and Exhibits.
(d) Exhibits
|
|
99.1
|
Press
Release announcing 2008 fourth quarter and full year consolidated earnings
issued on February 4, 2009.
|
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: February
4, 2009
ALEXANDER & BALDWIN,
INC.
/s/ Christopher J.
Benjamin
Christopher J. Benjamin
Senior Vice President,
Chief Financial Officer and
Treasurer
|
For
media inquiries:
|
For
investor relations inquiries:
|
|
Meredith
Ching
|
Kevin
L. Halloran
|
|
808.525.6669
|
808.525.8422
|
|
mching@abinc.com
|
khalloran@abinc.com
|
|
HOLD
FOR RELEASE:
|
|
|
8:00
A.M. EASTERN STANDARD TIME
|
|
|
Wednesday,
February 4, 2009
|
A&B REPORTS
2008
NET INCOME OF $132.4
MILLION
Modest
Full-Year Decline; Early Year Real Estate Sales Bolster Results
Honolulu
(February 4, 2009)—Alexander & Baldwin, Inc. (NYSE:AXB, “Company”) today
reported that net income for the full year 2008 was $132.4 million, or $3.19 per
diluted share. Net income for the full year 2007 was $142.2 million, or $3.30
per diluted share. Revenue for the full year 2008 was $1,898.3 million, compared
with revenue of $1,669.2 million for the full year 2007.
Net
income for the fourth quarter of 2008 was $23.9 million, or $0.58 per diluted
share. Net income in the fourth quarter of 2007 was $36.4 million, or $0.85 per
diluted share. Revenue for the fourth quarter of 2008 was $400.0 million,
compared with revenue of $433.0 million in the same period of 2007.
COMMENTS
ON QUARTER & OUTLOOK
“While
many of the markets served by Alexander & Baldwin experienced an economic
slowdown in 2008, our strong first half performance in development sales, strong
property sales throughout the year and increased efficiency measures in our
transportation segment enabled the Company to post a favorable full-year result,
representing a modest 7 percent year-over-year decline in net income and 3
percent decline in diluted earnings per share,” said Allen Doane, chairman and
chief executive officer.
“We
are pleased by this performance, but we recognize that our 2009 earnings
prospects have been diminished. As a result, we will continue to take all
necessary measures – cost containment and expense reduction, deferral of
non-essential capital projects, preservation of cash, shoring up of our
liquidity sources – to preserve our financial strength. The actions we are
taking will give us the flexibility to capitalize on attractive opportunities as
they arise, while remaining committed to a strong financial
footing.”
“The
Ocean Transportation segment posted a 16 percent decline in operating profit in
2008 as compared to 2007, reflecting a considerable decline in container and
auto volume, in line with the accelerated contraction of the Hawaii, Guam and
China markets. In all of our trade lanes, vigorous focus on cargo mix, yield
enhancement, fleet optimization and cost containment initiatives throughout the
year partially offset the unexpectedly precipitous volume decline. Earnings from
Matson Navigation’s stevedoring joint venture, which are a barometer for
Asia-Pacific trade activity, were off significantly. In the fourth quarter, as
the full thrust of the economic contraction took hold, volume dropped sharply,
resulting in a 30 percent decline in Ocean Transportation operating
profit.”
“The
Logistics Services segment, like Ocean Transportation, experienced lower volume
levels in its service lines that negatively impacted operating profit by 15
percent for the year, although higher yields offset the lower volume to some
degree. As well, higher expenses related to the ramp-up of Matson Global
Distribution Services (“Matson Global”), including an acquisition, modestly
impacted earnings but provide a solid foundation for growth in 2009. Matson
Integrated Logistics’ fourth quarter operating profit was off from the prior
year due to these same volume declines.”
“Historically
low sugar production levels resulting from a two-year drought led to a
considerable loss of nearly $13 million in our Agribusiness segment. 2008 was
the driest year on record with water deliveries to the fields at 50 percent of
the previous 60-year average.”
“Our Real
Estate Leasing segment posted operating profit of approximately $48 million, a
decline of 7 percent from the prior year, due primarily to higher depreciation
expenses attributable to the net addition of 1.3 million square feet to our
portfolio, mostly in industrial assets, and to modestly lower U.S. Mainland
occupancy late in the year related to softened higher-margin office and retail
demand. Fourth quarter results were 16 percent below 2007 levels. Still, average
occupancy rates at our properties were at high levels, 98 and 95 percent in the
Hawaii and mainland portfolios, respectively.”
“Our Real
Estate Sales operating profit in 2008 was very strong, 28 percent higher than
2007, resulting from a diversified mix of residential condominium sales (Oahu),
commercial property sales (U.S. Mainland), and land/ground lease sales (Maui).
That noted, in the latter half of the year there was a significant drop in
development sales activity as consumer demand for primary and resort residential
units abated. Fourth quarter operating profit of $19.3 million was 17 percent
lower than 2007, comprising a mix of commercial property and land
sales.”
“In
addition to the financial results achieved, we repurchased nearly 1.5 million
shares of the Company’s common stock through open market purchases in 2008 and
raised our dividend for the third straight year. These initiatives underscore
our commitment to returning cash to shareholders while concurrently making
investments that create value over time.”
TRANSPORTATION—OCEAN
TRANSPORTATION
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Revenue
|
$
|
239.5
|
$
|
262.3
|
-9
|
%
|
||||
|
Operating
profit
|
$
|
21.1
|
$
|
30.1
|
-30
|
%
|
||||
|
Operating
profit margin
|
8.8
|
%
|
11.5
|
%
|
||||||
|
Volume
(Units)
|
||||||||||
|
Hawaii
containers
|
35,900
|
41,500
|
-13
|
%
|
||||||
|
Hawaii
automobiles
|
15,300
|
33,200
|
-54
|
%
|
||||||
|
China
containers
|
11,100
|
13,200
|
-16
|
%
|
||||||
|
Guam
containers
|
3,300
|
3,900
|
-15
|
%
|
||||||
For the
fourth quarter of 2008, lower container volume in all trade lanes resulted in
lower revenue and $9.0 million lower operating profit. Ongoing yield and
cost containment initiatives, including fleet rationalization, partially offset
the impact of reduced volume and higher maintenance and repair expenses. Hawaii
container and automobile volume declines (13 and 54 percent, respectively)
reflect a broad-based weakness in the economy. China container volume decreased
16 percent compared with the fourth quarter of 2007, due to significantly lower
Asian import demand.
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Revenue
|
$
|
1,023.7
|
$
|
1,006.9
|
2
|
%
|
||||
|
Operating
profit
|
$
|
105.8
|
$
|
126.5
|
-16
|
%
|
||||
|
Operating
profit margin
|
10.3
|
%
|
12.6
|
%
|
||||||
|
Volume
(units):
|
||||||||||
|
Hawaii
containers
|
152,700
|
167,500
|
-9
|
%
|
||||||
|
Hawaii
automobiles
|
86,300
|
110,100
|
-22
|
%
|
||||||
|
China
containers
|
47,800
|
51,200
|
-7
|
%
|
||||||
|
Guam
containers
|
13,900
|
14,600
|
-5
|
%
|
||||||
For the
full year 2008, Ocean Transportation revenue increased by 2 percent due to
higher revenue from fuel surcharges, including a bunker adjustment factor
introduced into our China trade lane in May, favorable yields, and improved
cargo mix that were partially offset by reduced container volume in all trades,
principally in Hawaii. Container and auto volume changes were due to the same
factors cited for the quarter. Operating profit for 2008 decreased by 16
percent, primarily from the net volume changes, increases in fuel costs,
increases in vessel and terminal handling costs due to higher stevedoring rates
and lower earnings from Matson’s SSAT joint venture, partially offset by lower
voyage costs arising from optimization of fleet deployment, and lower
transportation and general and administrative expenses.
TRANSPORTATION—LOGISTICS
SERVICES
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Intermodal
revenue
|
$
|
58.8
|
$
|
70.4
|
-16
|
%
|
||||
|
Highway
revenue
|
41.0
|
37.4
|
10
|
%
|
||||||
|
Total
Revenue
|
$
|
99.8
|
$
|
107.8
|
-7
|
%
|
||||
|
Operating
profit
|
$
|
4.1
|
$
|
4.7
|
-13
|
%
|
||||
|
Operating
profit margin
|
4.1
|
%
|
4.4
|
%
|
||||||
Fourth
quarter 2008 Logistics services revenue of $99.8 million was $8.0 million, or 7
percent, lower than the fourth quarter of 2007, as a 16 percent decline in
intermodal revenue was partially offset by a 10 percent increase in highway
revenue and by revenues generated by Matson Global. Operating profit of $4.1
million was $0.6 million, or 13 percent, lower than in the comparable period
last year. The decrease was due principally to lower volume levels, partially
offset by higher yields in intermodal lines.
|
Year
Ended December 31,
|
|||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
||||||||
|
Intermodal
revenue
|
$
|
271.0
|
$
|
280.2
|
-3
|
%
|
|||||
|
Highway
revenue
|
165.0
|
153.3
|
8
|
%
|
|||||||
|
Total
Revenue
|
$
|
436.0
|
$
|
433.5
|
1
|
%
|
|||||
|
Operating
profit
|
$
|
18.5
|
$
|
21.8
|
-15
|
%
|
|||||
|
Operating
profit margin
|
4.2
|
%
|
5.0
|
%
|
|||||||
Logistics
revenue increased $2.5 million, or 1 percent, in 2008 compared with 2007, due
primarily to revenue related to the commencement of Matson Global’s warehousing
operations and the acquisition of PACAM, a regional warehousing and distribution
company, in the third quarter. The increase was partially offset by revenue loss
from lower volume in intermodal markets, and to the loss of agents and softness
in certain agents’ markets in the highway business. The decrease in operating
profit was primarily the result of lower volumes, exacerbated by non-recurring
items that positively impacted income in the third quarter of 2007, and higher
general and administrative expenses from the commencement of Matson Global’s
operations.
REAL
ESTATE—INDUSTRY
Real
estate leasing and sales revenue and operating profit are analyzed before
discontinued operations are removed. This is consistent with how the Company
evaluates segment results and makes decisions.
REAL
ESTATE—LEASING
The
Company regularly makes dispositions of commercial properties from its leasing
portfolio and land under ground leases and subsequently reinvests proceeds, on a
tax-deferred basis, in new properties. As a result, the Company often incurs
higher depreciation expenses attributable to the replacement of formerly
non-depreciable property with depreciable property, or a step-up in the cost
basis of its properties. Further, due to the inherent timing lag between
disposition and reinvestment, the Company incurs modest loss of revenue and
income in these interim periods.
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Revenue
|
$
|
25.5
|
$
|
27.0
|
-6
|
%
|
||||
|
Operating
profit
|
$
|
10.2
|
$
|
12.1
|
-16
|
%
|
||||
|
Operating
profit margin
|
40.0
|
%
|
44.8
|
%
|
||||||
Real
Estate Leasing revenue for the fourth quarter of 2008 was $25.5 million, a
decrease of 6 percent, and operating profit decreased 16 percent compared
to the fourth quarter of 2007. Earnings were primarily impacted by lower
mainland occupancy at higher-margin office properties and higher depreciation
and amortization expenses resulting from increased acquisition activity
throughout the year, offset by the net earnings improvement resulting from
increased acquisition activity and lower general and administrative
costs.
During
the quarter, the company sold its Venture Oaks office building (California) and
several improved and unimproved parcels in Maui, and acquired the Midstate 99
Distribution Center (California).
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Revenue
|
$
|
107.8
|
$
|
108.5
|
-1
|
%
|
||||
|
Operating
profit
|
$
|
47.8
|
$
|
51.6
|
-7
|
%
|
||||
|
Operating
profit margin
|
44.3
|
%
|
47.6
|
%
|
||||||
|
Average
Occupancy Rate:
|
||||||||||
|
Mainland
|
95
|
%
|
97
|
%
|
||||||
|
Hawaii
|
98
|
%
|
98
|
%
|
||||||
|
Leasable
Space (million sq. ft.):
|
||||||||||
|
Mainland
|
6.6
|
5.2
|
27
|
%
|
||||||
|
Hawaii
|
1.3
|
1.4
|
-7
|
%
|
||||||
For the
full year 2008, Real Estate Leasing revenue decreased slightly, due to lower
mainland occupancy and to the net effect of nonrecurring items recorded in the
first quarter of 2008 and in 2007, partially offset by net increases from
acquisition and disposition activity. Operating profit was 7 percent lower in
2008 than compared to 2007, a result of higher depreciation and amortization
expenses and lower mainland occupancy, partially offset by lower general and
administrative expenses.
Leasable
space increased by a net 1.3 million square feet in 2008 compared with 2007, due
to the net effect of four acquisitions of warehouse and distribution facilities
and the disposition of two retail centers and one office building.
REAL
ESTATE—SALES
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Improved
property sales
|
$
|
30.3
|
$
|
16.6
|
83
|
%
|
||||
|
Development
sales
|
5.6
|
10.7
|
-48
|
%
|
||||||
|
Unimproved/other
property sales
|
18.5
|
5.1
|
4
|
X
|
||||||
|
Total
revenue
|
$
|
54.4
|
$
|
32.4
|
68
|
%
|
||||
|
Operating
profit before joint ventures
|
$
|
20.6
|
$
|
16.2
|
27
|
%
|
||||
|
Earnings/(loss)
from joint ventures
|
(1.3
|
)
|
7.0
|
NM
|
||||||
|
Total
operating profit
|
$
|
19.3
|
$
|
23.2
|
-17
|
%
|
||||
In the
fourth quarter of 2008, Real Estate Sales revenue increased by $22.0 million as
compared to the fourth quarter of 2007. The increase was primarily due to the
sales of the Venture Oaks office building (California) and several improved
properties and unimproved parcels on Maui. Operating profit decreased by 17
percent during the fourth quarter of 2008, as compared to the same period in
2007, due principally to joint venture sales at the Company’s Kai Malu joint
venture that occurred in the fourth quarter of 2007, partially offset by higher
improved property sales in the fourth quarter of 2008. In addition, the Company
recorded a $3.0 million impairment loss from its Santa Barbara Ranch joint
venture in the fourth quarter of 2008.
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Improved
property sales
|
$
|
103.6
|
$
|
90.2
|
15
|
%
|
||||
|
Development
sales
|
217.4
|
14.9
|
15
|
X
|
||||||
|
Unimproved/other
property sales
|
29.2
|
12.7
|
130
|
%
|
||||||
|
Total
revenue
|
$
|
350.2
|
$
|
117.8
|
197
|
%
|
||||
|
Operating
profit before joint ventures
|
$
|
86.6
|
$
|
51.8
|
67
|
%
|
||||
|
Earnings
from joint ventures
|
9.0
|
22.6
|
-60
|
%
|
||||||
|
Total
operating profit
|
$
|
95.6
|
$
|
74.4
|
28
|
%
|
||||
Real
Estate Sales revenue in 2008 was $350.2 million and operating profit was
$95.6 million, which represent increases of 197 percent and 28 percent,
respectively, versus 2007. Full year revenue and operating profit include the
sale of residential and commercial units at the Keola La’i high-rise development
in Honolulu, two shopping centers and one office building in the U.S. Mainland,
single-family homes at Keala’ula on Kauai, a residential apartment building on
Maui, three improved Maui properties, and several leased fee parcels and other
land parcels on Maui. Full year revenue and operating profit from
joint ventures were primarily attributable to sales activity at Kai Malu and
several Valencia projects, partially offset by the Company’s share of marketing
and other operating expenses at the Company’s Kukui’ula joint venture, and an
impairment loss at the Company’s Santa Barbara Ranch joint venture. In 2008,
operating profit also included a final insurance settlement
payment.
AGRIBUSINESS
The
operating results of the Agribusiness segment are dependent on a number of
factors, particularly weather conditions, which affect yields, volume of
hydro-electric generation, planting, harvesting, and factory operations.
Consequently, operating results from the Agribusiness segment will vary from
period to period.
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Revenue
|
$
|
28.1
|
$
|
30.7
|
-8
|
%
|
||||
|
Operating
loss
|
$
|
(6.1
|
)
|
$
|
(0.7
|
)
|
-9
|
X
|
||
|
Tons
sugar produced
|
30,400
|
34,000
|
-11
|
%
|
||||||
Agribusiness
revenue for the fourth quarter of 2008 decreased 8 percent primarily due to
lower raw sugar sales, lower coffee sales and lower power sales, partially
offset by an increase in sales of specialty sugars. Operating loss increased
significantly due principally to the decrease in raw sugar production and higher
fuel-related operating costs and to lower power sales volume stemming from a
lack of hydro-power associated with prolonged drought conditions.
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||
|
Revenue
|
$
|
124.3
|
$
|
123.7
|
--
|
|||||
|
Operating
profit (loss)
|
$
|
(12.9
|
)
|
$
|
0.2
|
NM
|
||||
|
Operating
profit margin
|
NM
|
0.2
|
%
|
|||||||
|
Tons
sugar produced
|
145,200
|
164,500
|
-12
|
%
|
||||||
Full year
revenues for Agribusiness were essentially flat as compared to the prior year,
as higher power sales prices and specialty sugar sales volume were offset by
lower volume of raw sugar and soil sales and lower molasses sales prices.
Operating losses were significant and are due to the 12 percent reduction in
sugar volume and higher fuel-related operating costs, partially offset by higher
power prices.
CORPORATE
EXPENSE
Fourth
quarter 2008 corporate expenses of $4.6 million were $3.2 million lower than the
fourth quarter of 2007. For the year, corporate expenses were $21.0 million, or
$6.3 million lower than full year 2007. The decrease in the quarter and the year
are due principally to lower expenses related to performance-based incentive
programs, and to cost containment initiatives related to corporate
overhead.
CONDENSED
CASH FLOW TABLE –
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions, unaudited)
|
2008
|
2007
|
Change
|
|||||||
|
Cash
Flow from Operating Activities
|
$
|
275
|
$
|
124
|
2
|
X
|
||||
|
Capital
Expenditures (1)
|
||||||||||
|
Transportation
|
(38
|
)
|
(68
|
)
|
-44
|
%
|
||||
|
Real
Estate
|
(55
|
)
|
(34
|
)
|
62
|
%
|
||||
|
Agribusiness
and other
|
(16
|
)
|
(20
|
)
|
-20
|
%
|
||||
|
Total
Capital Expenditures
|
(109
|
)
|
(122
|
)
|
-11
|
%
|
||||
|
Other
Investing Activities, Net
|
(40
|
)
|
(23
|
)
|
74
|
%
|
||||
|
Cash
Used in Investing Activities
|
$
|
(149
|
)
|
$
|
(145
|
)
|
3
|
%
|
||
|
Net
Debt Proceeds/(Payments)
|
(16
|
)
|
66
|
NM
|
||||||
|
Repurchase
of Capital Stock
|
(59
|
)
|
(33
|
)
|
79
|
%
|
||||
|
Dividends
Paid
|
(51
|
)
|
(48
|
)
|
6
|
%
|
||||
|
Other
Financing Activities, Net
|
2
|
8
|
-75
|
%
|
||||||
|
Cash
Used in Financing Activities
|
$
|
(124
|
)
|
$
|
(7
|
)
|
18
|
X
|
||
|
Net
Increase/(Decrease) in Cash
|
$
|
2
|
$
|
(28
|
)
|
NM
|
||||
(1)
Excludes non-cash 1031 transactions and real estate development
activity.
Alexander & Baldwin, Inc.,
headquartered in Honolulu, is engaged in ocean transportation and logistics
services, through its subsidiaries, Matson Navigation Company, Inc. and Matson
Integrated Logistics, Inc.; in real estate, through A&B Properties, Inc.;
and in agribusiness, 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.
2008 and
2007 Fourth-Quarter and Full-Year Results (Condensed)
(In
Millions, Except Per Share Amounts, Unaudited)
|
2008
|
2007
|
|||||||
|
Three Months Ended December
31:
|
||||||||
|
Revenue
|
$
|
400.0
|
$
|
433.0
|
||||
|
Income
From Continuing Operations
|
$
|
10.9
|
$
|
25.6
|
||||
|
Discontinued
Operations: Properties1
|
$
|
13.0
|
$
|
10.8
|
||||
|
Net
Income
|
$
|
23.9
|
$
|
36.4
|
||||
|
Basic
Share Earnings
|
||||||||
|
Continuing
Operations
|
$
|
0.26
|
$
|
0.61
|
||||
|
Discontinued
Operations
|
$
|
0.32
|
$
|
0.25
|
||||
|
Net
Income
|
$
|
0.58
|
$
|
0.86
|
||||
|
Diluted
Share Earnings
|
||||||||
|
Continuing
Operations
|
$
|
0.26
|
$
|
0.59
|
||||
|
Discontinued
Operations
|
$
|
0.32
|
$
|
0.26
|
||||
|
Net
Income
|
$
|
0.58
|
$
|
0.85
|
||||
|
Basic
Average Shares Outstanding
|
41.1
|
42.3
|
||||||
|
Diluted
Average Shares Outstanding
|
41.2
|
42.9
|
||||||
|
2008
|
2007
|
|||||||
|
Years Ended December 31:
|
||||||||
|
Revenue
|
$
|
1,898.3
|
$
|
1,669.2
|
||||
|
Income
From Continuing Operations
|
$
|
95.9
|
$
|
104.2
|
||||
|
Discontinued
Operations: Properties1
|
$
|
36.5
|
$
|
38.0
|
||||
|
Net
Income
|
$
|
132.4
|
$
|
142.2
|
||||
|
Basic
Share Earnings
|
||||||||
|
Continuing
Operations
|
$
|
2.32
|
$
|
2.45
|
||||
|
Discontinued
Operations
|
$
|
0.89
|
$
|
0.89
|
||||
|
Net
Income
|
$
|
3.21
|
$
|
3.34
|
||||
|
Diluted
Share Earnings
|
||||||||
|
Continuing
Operations
|
$
|
2.31
|
$
|
2.42
|
||||
|
Discontinued
Operations
|
$
|
0.88
|
$
|
0.88
|
||||
|
Net
Income
|
$
|
3.19
|
$
|
3.30
|
||||
|
Basic
Average Shares Outstanding
|
41.2
|
42.5
|
||||||
|
Diluted
Average Shares Outstanding
|
41.5
|
43.1
|
||||||
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 (Condensed)
(In
Millions, Except Per Share Amounts, Unaudited)
|
Three Months Ended
|
Year Ended
|
||||||||||||
|
December 31,
|
December 31,
|
||||||||||||
|
2008
|
2007
|
2008
|
2007
|
||||||||||
|
Revenue:
|
|||||||||||||
|
Transportation
|
|||||||||||||
|
Ocean
Transportation
|
$
|
239.5
|
$
|
262.3
|
$
|
1,023.7
|
$
|
1,006.9
|
|||||
|
Logistics
Services
|
99.8
|
107.8
|
436.0
|
433.5
|
|||||||||
|
Real
Estate
|
|||||||||||||
|
Leasing
|
25.5
|
27.0
|
107.8
|
108.5
|
|||||||||
|
Sales
|
54.4
|
32.4
|
350.2
|
117.8
|
|||||||||
|
Less
Amounts Reported In Discontinued Operations
|
(43.7
|
)
|
(24.2
|
)
|
(133.0
|
)
|
(112.0
|
)
|
|||||
|
Agribusiness
|
28.1
|
30.7
|
124.3
|
123.7
|
|||||||||
|
Reconciling
Items
|
(3.6
|
)
|
(3.0
|
)
|
(10.7
|
)
|
(9.2
|
)
|
|||||
|
Total
Revenue
|
$
|
400.0
|
$
|
433.0
|
$
|
1,898.3
|
$
|
1,669.2
|
|||||
|
Operating Profit, Net
Income:
|
|||||||||||||
|
Transportation
|
|||||||||||||
|
Ocean
Transportation
|
$
|
21.1
|
$
|
30.1
|
$
|
105.8
|
$
|
126.5
|
|||||
|
Logistics
Services
|
4.1
|
4.7
|
18.5
|
21.8
|
|||||||||
|
Real
Estate
|
|||||||||||||
|
Leasing
|
10.2
|
12.1
|
47.8
|
51.6
|
|||||||||
|
Sales
|
19.3
|
23.2
|
95.6
|
74.4
|
|||||||||
|
Less
Amounts Reported In Discontinued Operations
|
(21.0
|
)
|
(17.4
|
)
|
(59.1
|
)
|
(61.0
|
)
|
|||||
|
Agribusiness
|
(6.1
|
)
|
(0.7
|
)
|
(12.9
|
)
|
0.2
|
||||||
|
Total
Operating Profit
|
27.6
|
52.0
|
195.7
|
213.5
|
|||||||||
|
Interest
Expense
|
(6.2
|
)
|
(5.6
|
)
|
(23.7
|
)
|
(18.8
|
)
|
|||||
|
General
Corporate Expenses
|
(4.6
|
)
|
(7.8
|
)
|
(21.0
|
)
|
(27.3
|
)
|
|||||
|
Income
From Continuing Operations Before Income Taxes
|
16.8
|
38.6
|
151.0
|
167.4
|
|||||||||
|
Income
Taxes
|
(5.9
|
)
|
(13.0
|
)
|
(55.1
|
)
|
(63.2
|
)
|
|||||
|
Income
From Continuing Operations
|
10.9
|
25.6
|
95.9
|
104.2
|
|||||||||
|
Discontinued
Operations
|
13.0
|
10.8
|
36.5
|
38.0
|
|||||||||
|
Net
Income
|
$
|
23.9
|
$
|
36.4
|
$
|
132.4
|
$
|
142.2
|
|||||
|
Basic
Earnings Per Share, Continuing Operations
|
$
|
0.26
|
$
|
0.61
|
$
|
2.32
|
$
|
2.45
|
|||||
|
Basic
Earnings Per Share, Discontinued Operations
|
$
|
0.32
|
$
|
0.25
|
$
|
0.89
|
$
|
0.89
|
|||||
|
Basic
Earnings Per Share, Net Income
|
$
|
0.58
|
$
|
0.86
|
$
|
3.21
|
$
|
3.34
|
|||||
|
Diluted
Earnings Per Share, Continuing Operations
|
$
|
0.26
|
$
|
0.59
|
$
|
2.31
|
$
|
2.42
|
|||||
|
Diluted
Earnings Per Share, Discontinued Operations
|
$
|
0.32
|
$
|
0.26
|
$
|
0.88
|
$
|
0.88
|
|||||
|
Diluted
Earnings Per Share, Net Income
|
$
|
0.58
|
$
|
0.85
|
$
|
3.19
|
$
|
3.30
|
|||||
|
Basic
Average Shares Outstanding
|
41.1
|
42.3
|
41.2
|
42.5
|
|||||||||
|
Diluted
Average Shares Outstanding
|
41.2
|
42.9
|
41.5
|
43.1
|
|||||||||
Consolidated Balance
Sheets
(Condensed)
(In Millions, Unaudited)
|
December 31,
|
December 31,
|
||||||||
|
2008
|
2007
|
||||||||
|
ASSETS
|
|||||||||
|
Current
Assets
|
$
|
284
|
$
|
421
|
|||||
|
Investments
in Affiliates
|
208
|
184
|
|||||||
|
Real
Estate Developments
|
78
|
99
|
|||||||
|
Property,
Net
|
1,590
|
1,582
|
|||||||
|
Other
Long-Term Assets
|
190
|
193
|
|||||||
|
Total
|
$
|
2,350
|
$
|
2,479
|
|||||
|
LIABILITIES
& EQUITY
|
|||||||||
|
Current
Liabilities
|
$
|
238
|
$
|
322
|
|||||
|
Long-Term
Debt
|
452
|
452
|
|||||||
|
Employee
Benefit Plans
|
122
|
50
|
|||||||
|
Other
Long-Term Liabilities
|
52
|
57
|
|||||||
|
Deferred
Income Taxes
|
414
|
468
|
|||||||
|
Shareholders’
Equity
|
1,072
|
1,130
|
|||||||
|
Total
|
$
|
2,350
|
$
|
2,479
|
|||||