- Operating income for Ocean Transportation is expected in Q4 2022 70.0 dollars to 80.0 million dollars
- Logistics operating income is expected in Q4 2022 12.0 dollars to 13.0 million dollars
- Net income is expected in Q4 2022 and reduced EPS 69.9 dollars to 74.8 million dollars and $1.88 to $2.01respectively
- The decrease in consolidated operating income compared to the previous year was driven primarily by a smaller contribution from China service
- Repurchased approximately 1.5 million shares in 4Q22
- Announces fourth quarter earnings call date February 21, 2023
HONOLULU, January 18, 2023 /PRNewswire/ — Matson, Inc. (“Matson” or the “Company”) (NYSE: MATX ) today announces preliminary fourth quarter financial results, provides business updates and announces that its fourth quarter earnings call will be held February 21, 2023.
“Matson’s ocean transportation and logistics business segment performed well in a difficult business environment,” said the president and chief executive officer Matt Cox. “Within ocean shipping, our China services achieved a lower volume and freight rates compared to the previous year, which contributed to the decline in our consolidated operating income. As we mentioned in our November earnings call, we expected the fourth quarter of 2022 and the first quarter of 2023 to be challenging in the Trans-Pacific trade as merchant inventories adjust to consumer demand levels and as ocean liners reduce vessel capacity to meet lower levels demand. Currently in the trans-Pacific market, business conditions remain challenging as retailers continue to right-size inventory amid weakening consumer demand, rising interest rates and economic uncertainty. As such, we expect our CLX and CLX+ services in the first quarter and first half of the year to reflect freight demand levels below normalized conditions with lower volumes compared to the prior year and a lower price environment. In the absence of an economic ‘hard landing’ in the US, we expect improved trade dynamics in the second half of 2023 as the trans-Pacific market moves to a more normalized level of demand. Regardless of the economic environment, we operate two of the fastest and most reliable ocean services and, as a result, expect to continue to earn a significant rate premium over the Shanghai Container Freight Index.”
Mr Cox added: “We have seen lower volumes year-on-year in our domestic overseas routes Hawaii, Alaska and Guam compared to the period of a year ago. Year-on-year decline Hawaii volume was primarily due to lower demand in retail and hospitality compared to elevated pandemic levels in the year-ago period. In logistics, operating income decreased compared to the prior year primarily due to a lower contribution from supply chain management in line with lower demand in the Trans-Pacific Trade Area. As a result, Matson expects operating income for Ocean Transportation of in the fourth quarter 70.0 dollars to 80.0 million dollars and operating income from logistics 12.0 dollars to 13.0 million dollars. We also expect Q4 2022 to be net profit and diluted EPS 69.9 dollars to 74.8 million dollars and $1.88 to $2.01that is.”
Fourth quarter Tradelane volume (forty-foot equivalent units (FEU)) (1)(2):
For the three months that ended December 31, 2022 compared to the three months ended December 31, 2021 and on a FEU basis:
- Hawaii the amount of containers decreased by 13.0 percent primarily due to lower demand in retail and catering and one week less;
- Alaska the volume decreased by 7.7 percent primarily due to (i) lower volume to the north primarily due to one less sailing and one week less and (ii) lower volume to the south primarily due to less domestic seafood volume and one week less, partially offset by higher exports quantities of seafood from Alaska-Asia Express (“AAX”);
- China volume was 47.2 percent lower primarily due to (i) lower demand for CLX and CLX+ services, (ii) discontinuation of CCX service in 3Q22, and (iii) one less week;
- Guam volume was 14.0 percent lower primarily due to lower demand in retail; and
- The amount of other containers decreased by 10.7 percent.
(1) The approximate amounts included for the period are based on the departure date of the trip, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income generated during the reporting period for transit travel at the end of each reporting period.
(2) Other containers include containers from services on various islands in Micronesia and the South Pacific, i Okinawa, Japan.
Purchase of liquidity, debt and shares
Matson money and cash equivalents of December 31, 2022 was approximately $250.0 millionwhich excludes 518.2 million dollars in cash on deposit within the Capital Construction Fund. Total debt (presented before any reduction for deferred loan fees under GAAP) of December 31, 2022 he was 517.5 million dollars.
During the fourth quarter of 2022, Matson repurchased approximately 1.5 million shares at an aggregate cost of 101.9 million dollars. From December 31, 2022The Company had approximately 1.5 million shares outstanding in its share repurchase program.
The slide presentation accompanying this press release is available on the Company’s website at www.matson.com, under Investors.
Teleconference and webcast
The conference call is scheduled for February 21, 2023 4:30 p.m. ET when Matt Coxpresident and chief executive officer, and Joel Wineexecutive vice president and chief financial officer, will discuss Matson’s fourth quarter results.
The date of the conference call
Tuesday, February 21, 2023
4:30 PM ET/1:30 PM PT/11:30 AM HT
The conference call will be webcast live along with an additional slide presentation on the Company’s website at www.matson.com, under Investors.
Participants can register for the conference call at:
Registered participants will receive a conference call reference number and a unique PIN code to access the live event. Although not required, it is recommended that you join 10 minutes before the event’s start time. A replay of the conference call will be available approximately two hours after the event via the webcast link at www.matson.com, under Investors.
About the company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of marine transportation and logistics services. Matson provides a vital lifeline to domestic non-neighboring economies Hawaii, Alaskaand Guam, and other island economies in Micronesia. Matson also provides superior, expedited service China to Long Beach, Californiaprovides services for Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch port to Asia. The company’s fleet of owned and chartered vessels includes container ships, combined container and roll-on/roll-off ships, and custom-designed barges. Matson Logistics, founded in 1987, expands the geographic reach of Matson’s transportation network throughout North America. Its integrated light logistics services include rail intermodal transport, highway brokerage, warehousing, freight consolidation, Asia supply chain services and shipping to Alaska. Additional information about the Company is available at www.matson.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, including without limitation those statements relating to performance and financial results . These statements involve numerous risks and uncertainties that could cause actual results to differ materially from those anticipated by the relevant forward-looking statement, including but not limited to risks and uncertainties related to the repeal, significant modification or waiver of the Jones Act or its applications or our failure to maintain our status a United States a citizen under the Jones Act; changes in macroeconomic conditions, geopolitical developments or government policies, including the COVID-19 pandemic; our ability to offer differentiated service in China for which customers are willing to pay a significant premium; new or increased competition or improvements in competitors’ service levels; our relationship with customers, agents, sellers and partners and changes to related agreements; fuel prices, our ability to collect fuel-related surcharges and/or costs or limited availability of required fuels; developing stakeholder expectations regarding environmental, social and governance issues; timely or successful completion of fleet upgrade initiatives; the occurrence of severe weather, natural disasters, marine accidents, spill events and other physical and operational risks, including those arising from climate change; transition and other risks resulting from climate change; the magnitude and timing of the impact of public health crises, including COVID-19; significant business contracts and leases that cannot be exchanged under favorable terms; any unforeseen dockage or repair costs; joint venture relationships; operating in foreign shipping markets, including the imposition of tariffs or changes in international trade policy; any delays or cost overruns associated with terminal modernization; war, terrorist attacks or other acts of violence; completing and integrating acquisitions; relations with our unions; satisfactory negotiation and renewal of expired collective bargaining agreements without significant disruptions in Matson’s operations; loss of key personnel or failure to adequately manage human capital; use of our information technology and communication systems and cyber security attacks; changes in our credit profile and our future financial results; our ability to obtain future debt financing; continuation of Title XI and CCF programs; compliance costs and liability related to numerous safety, environmental and other laws and regulations; and disputes, legal and other proceedings and government inquiries or investigations. These forward-looking statements are not guarantees of future performance. This release should be read in conjunction with our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 and our other filings with the SEC as of the date of this release, which identify important factors that could affect the forward-looking statements in this release. We undertake no obligation to update our forward-looking statements.
SOURCE Matson, Inc.