HONOLULU, Oct. 11, 2021 /PRNewswire/ -- Matson, Inc.
("Matson" or the "Company") (NYSE: MATX) today announces
preliminary third quarter financial results, provides a business
update and announces that its third quarter earnings call will be
held on November 3, 2021.
"The strong economic and business trends we saw in the second
quarter continued in the third quarter resulting in solid
performance in both Ocean Transportation and Logistics," said
Chairman and Chief Executive Officer Matt
Cox. "Within Ocean Transportation, our China service continued to see significant
demand for its expedited ocean services, including the new CCX
service, as volume for e-commerce, garments and other goods
remained elevated heading into the peak season. Continued
strong demand for the China
service was the primary driver of the increase in consolidated
operating income year-over-year. Currently, supply chain
congestion continues in the Transpacific tradelane with the
combination of inventory restocking, peak season and ongoing
elevated consumption trends. We expect these conditions to
remain largely in place at least through mid-year 2022."
Mr. Cox added, "In our domestic ocean tradelanes, we continued
to see strong demand with higher year-over-year volumes compared to
the largely pandemic-reduced volumes in the third quarter of last
year. In Hawaii, we experienced elevated westbound freight
demand as the state's tourism and economy continued to rebound
sharply from the pandemic lows, although towards the end of the
quarter we experienced a modest negative impact in freight related
to the state's efforts to address the spread of the COVID-19 Delta
variant. In Logistics, operating income increased
year-over-year compared to the operating income achieved in the
year ago period as we continued to see elevated goods consumption,
inventory restocking and favorable supply and demand fundamentals
in our core markets. As a result, Matson expects third
quarter operating income for Ocean Transportation of $358.0 to $363.0
million and Logistics operating income of $15.0 to $16.0
million. We also expect third quarter 2021 net income
and diluted EPS to be $277.3 to
$285.5 million and $6.39 to $6.58,
respectively."
Third Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended September 30,
2021 compared to the three months ended September 30, 2020 and on a FEU basis:
- Hawaii container volume
increased 11.5 percent primarily due to higher retail and
hospitality-related demand due to the continued rebound in tourism
and the Hawaii economy compared to
the volume in the year ago period, which was negatively impacted by
the state's COVID-19 mitigation efforts, including restrictions on
tourism;
- Alaska volume increased 10.7
percent due to the addition of volume from the Alaska-Asia Express,
higher northbound volume primarily due to an additional sailing and
higher retail-related demand, and higher southbound
volume;
- China volume was 21.7 percent
higher primarily due to CCX volume and volume from an extra
loader. The total number of eastbound voyages in the
China service increased by 6
year-over-year;
- Guam volume was 14.6 percent
higher primarily due to higher retail-related demand compared to
the volume in the year ago period; and
- Other containers volume increased 17.4 percent primarily due to
higher volume in Okinawa.
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(1)
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Approximate volumes
included for the period are based on the voyage departure date, but
revenue and operating income are adjusted to reflect the percentage
of revenue and operating income earned during the reporting period
for voyages in transit at the end of each reporting
period.
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(2)
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Other containers
includes containers from services in various islands in Micronesia
and the South Pacific, and Okinawa, Japan.
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Share Repurchase
During the third quarter of 2021, Matson repurchased
approximately 1.5 million shares for a total cost of $115.7 million. As of September 30, 2021, the Company had approximately
1.5 million shares remaining in its share repurchase
program.
A slide presentation that accompanies this press release is
available on the Company's website at www.matson.com, under
Investors.
Teleconference and Webcast
A conference call is scheduled on November 3, 2021 at 4:30
p.m. ET when Matt Cox,
Chairman and Chief Executive Officer, and Joel Wine, Executive Vice President and Chief
Financial Officer, will discuss Matson's third quarter results.
Date of Conference
Call:
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Wednesday, November
3, 2021
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Scheduled
Time:
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4:30 p.m. ET / 1:30
p.m. PT / 10:30 a.m. HT
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Participant Toll Free
Dial-In #:
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1-877-312-5524
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International Dial-In
#:
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1-253-237-1144
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The conference call will be broadcast live along with an
additional slide presentation on the Company's website at
www.matson.com, under Investors. A replay of the conference
call will be available approximately two hours after the call
through November 10, 2021 by dialing
1-855-859-2056 or 1-404-537-3406 and using the conference number
4158606. The slides and audio webcast of the conference call
will be archived for one full quarter on the Company's website at
www.matson.com, under Investors.
About the Company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of
ocean transportation and logistics services. Matson provides
a vital lifeline to the domestic non-contiguous economies of
Hawaii, Alaska, and Guam, and to other island economies in
Micronesia. Matson also operates premium, expedited services
from China to Long Beach, California, provides service to
Okinawa, Japan and various islands
in the South Pacific, and operates an international export service
from Dutch Harbor to Asia.
The Company's fleet of owned and chartered vessels includes
containerships, combination container and roll-on/roll-off ships
and custom-designed barges. Matson Logistics, established in
1987, extends the geographic reach of Matson's transportation
network throughout North America. Its integrated, asset-light
logistics services include rail intermodal, highway brokerage,
warehousing, freight consolidation, Asia supply chain services, and forwarding to
Alaska. Additional information about the Company is available
at www.matson.com.
Forward-Looking Statements
Statements in this news release that are not historical facts
are "forward-looking statements," within the meaning of the Private
Securities Litigation Reform Act of 1995, including without
limitation those statements regarding performance and financial
results, operating income, net income, earnings per share, demand
for our expedited Transpacific services, supply and demand dynamics
in the Transpacific tradelane, supply chain congestion, consumption
demand conditions, demand for e-commerce, garments and other goods,
tourism levels, and economic growth and drivers in Hawaii, Alaska and Guam. These statements
involve a number of risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
relevant forward-looking statement, including but not limited to
risks and uncertainties relating to repeal, substantial amendment
or waiver of the Jones Act or its application, or our failure to
maintain our status as a United
States citizen under the Jones Act; regional, national and
international economic conditions; new or increased competition or
improvements in competitors' service levels; fuel prices, our
ability to collect fuel-related surcharges and/or the cost or
limited availability of required fuels; our relationship with
vendors, customers and partners and changes in related agreements;
the actions of our competitors; our ability to offer a
differentiated service in China
for which customers are willing to pay a significant premium; the
imposition of tariffs or a change in international trade policies;
the magnitude and timing of the impact of public health crises,
including COVID-19; any unanticipated dry-dock or repair expenses;
any delays or cost overruns related to the modernization of
terminals; consummating and integrating acquisitions; changes in
general economic and/or industry-specific conditions; competition
and growth rates within the logistics industry; freight levels and
increasing costs and availability of truck capacity or alternative
means of transporting freight; changes in relationships with
existing truck, rail, ocean and air carriers; changes in customer
base due to possible consolidation among customers; conditions in
the financial markets; changes in our credit profile and our future
financial performance; our ability to obtain future debt
financings; continuation of the Title XI and CCF programs; the
impact of future and pending legislation and regulations, including
regulations related to greenhouse gas emissions and other
environmental laws and regulations; government regulations and
investigations; relations with our unions; satisfactory negotiation
and renewal of expired collective bargaining agreements without
significant disruption to Matson's operations; war, terrorist
attacks or other acts of violence; the use of our information
technology and communication systems and cybersecurity attacks; and
the occurrence of marine accidents, poor weather or natural
disasters. 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 for the year
ended December 31, 2020 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. We do not undertake any
obligation to update our forward-looking statements.
Investor Relations
inquiries:
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News Media
inquiries:
|
Lee
Fishman
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Keoni
Wagner
|
Matson, Inc.
|
Matson, Inc.
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510.628.4227
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510.628.4534
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lfishman@matson.com
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kwagner@matson.com
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SOURCE Matson, Inc.