2,550-unit Wai‘ale project gets hearing

Published on February 18, 2012 in General Ag News and Notes.

MAKENA – The state Land Use Commission began this week what promises to be a long series of proceedings on Alexander & Baldwin Properties’ proposed 545-acre, 2,550-unit Wai’ale subdivision in Central Maui.

The commission listened to about two dozen residents testify for and against the proposal Thursday and Friday at the Makena Beach & Golf Resort.

“This is very preliminary,” said A&B Properties Vice President Grant Chun. “We are still in the conceptual phase. A lot of the questions asked today are to be answered on the county level.”

Commission members said that they intend to return for more testimony from state and county officials in April, Chun said Friday.

The Wai’ale project is seeking a state land-use district boundary change from agriculture to urban. And, the Maui County Council will take up proposed changes of zoning for the property as well as amendments to the county general and community plans, said county Deputy Corporation Counsel Michael Hopper.

The governor’s Office of Planning and Mayor Alan Arakawa’s Department of Planning support the project. Proponents of the development maintain it will bring jobs, tax revenue and affordable and market-priced homes as Maui’s population continues to grow.

Members of the Waikapu Community Association, conservationists and Native Hawaiian groups oppose the project. Continue reading ‘2,550-unit Wai‘ale project gets hearing’

HC&S profits offset Matson, property losses

Published on February 17, 2012 in General Ag News and Notes and Sugar Cane.

Alexander & Baldwin Inc.’s agricultural sector – led by Maui’s Hawaiian Commercial & Sugar Co. – produced a “strong performance” in 2011 while losses related to Matson Navigation Co. and the real estate sales division put a drag on company profits.

In reporting its 2011 and fourth-quarter financial results Monday, the Honolulu-based company said it logged a net income of $34.2 million, or 81 cents a share, for the year, down 63 percent from the $92.1 million, or $2.22 a share, in 2010 and down nearly 75 percent from the $132 million, or $3.19 a share, in 2008, as the Great Recession began roiling the national economy.

For the fourth quarter, A&B’s net income was only $1.6 million, or 4 cents a share, down from $20.2 million, or 48 cents a share, in the same quarter the previous year.

The company’s ocean transportation sector showed an operating profit of $74.1 million for the year, down from $118.7 million in 2010. This sector of the company suffered losses from the discontinuing of its second China-Long Beach service in the third quarter.

In addition, A&B said that the company continues to make progress on plans to separate its shipping and real estate/agricultural businesses in the second half of this year.

The agricultural sector, which includes HC&S and trucking and storage companies on Maui, Kauai and the Big Island, showed an operating profit of $22.2 million in 2011, up 264 percent from $6.1 million in 2010. This is a big contrast from three years ago, when agriculture lost $27 million and the board of directors debated shutting down sugar operations. Continue reading ‘HC&S profits offset Matson, property losses’

A&B project could bring 2K homes to Central Maui

Published on June 7, 2011 in General Ag News and Notes and Sugar Cane.

WAILUKU – A&B Properties has released for public review a draft environmental impact statement for Wai’ale, a master-planned community on about 545 acres in Central Maui.

While the project raises the prospect of the construction of more than 2,000 homes in one of Maui’s fastest-growing regions, the development also faces some steep challenges, particularly in gaining access to drinking water and sewage treatment.

A&B Vice President Grant Chun said the project’s tentative design was “informed by the standards and goals of the Maui Island Plan,” which is pending review by the Maui County Council.

The planning and entitlement process is expected to take “many years,” Chun said Monday. Project planners are at the start of working with state officials on the project’s environmental review before seeking a district boundary amendment, he said.

The property is on either side of East Waiko Road, with Kuihelani Highway to the east and Honoapiilani Highway and Waikapu to the west. It is bordered on the north by Maui Lani’s Legends and Traditions subdivisions and the Waikapu Stream to the south.

Plans call for building 2,550 single- and multifamily homes, with land set aside for commercial and retail space, offices, civic and other public facilities, including an 18-acre middle school, a community center, regional and neighborhood parks, and a possible wastewater treatment plant. Now, the land is fallow sugar cane fields, a plant nursery, portions of a cattle feed lot, sand stockpiles and vacant land, Continue reading ‘A&B project could bring 2K homes to Central Maui’

A&B’s agribusiness sector recovers but shipping down – Mauinews.com | News, Sports, Jobs, Visitor’s Information – The Maui News

Published on May 5, 2011 in General Ag News and Notes and Sugar Cane.

Although its agribusiness sector continued its recovery in the first quarter, Alexander & Baldwin’s usual profit center, Matson Navigation Co., lost money, and the company reported a thin profit of $5.2 million, or 12 cents per share, Tuesday.

President Stanley Kuriyama said Matson couldn’t adjust its fuel surcharges fast enough to keep up with soaring oil prices.

Agribusiness, primarily Hawaiian Commercial & Sugar Co., had an operating profit of $2.6 million, compared with a loss of $1.1 million in the first quarter of 2010.

It is difficult to compare quarter-to-quarter results for HC&S, since in the first quarter of 2010 the Puunene mill shut down for an extended overhaul and harvesting did not begin until the second quarter. But Kuriyama pointed out that the company’s agriculture operation has now experienced four straight quarters of profitability, following years of serious losses.

It is also difficult to compare quarter-to-quarter changes at Matson, because it signed a significant connecting carrier agreement with a large international carrier and opened a second service to China. Both increased business, but the startup costs for the second “string” of voyages to China resulted in a loss.

Hawaii container traffic was up to 34,000, from 31,400 the year before, partly indicating expansion in the island economy. Continue reading ‘A&B’s agribusiness sector recovers but shipping down – Mauinews.com | News, Sports, Jobs, Visitor’s Information – The Maui News’

Alexander & Baldwin stock jumps 19% after talk of break up

Published on April 1, 2011 in General Ag News and Notes and Sugar Cane.

Shares of Alexander & Baldwin stock soared 19 percent today to close up $8.82 at $54.47 following yesterday’s announcement that a New York hedge fund manager and a partner bought up shares to become A&B’s largest owner.

The closing price was the highest since Sept. 9, 2007, when A&B’s stock closed at $57.73 on the New York Stock Exchange.

Bloomberg News reported that Wells Fargo Securities, which downgraded A&B’s stock last week, raised its expectations for the stock and estimated A&B’s “break up” value — that is splitting apart core divisions of ocean cargo transportation, commercial real estate and agribusiness potentially to be sold — at about $54 a share.

Stock analysts and some company insiders anticipate that the hedge fund manager, Bill Ackman of Pershing Square Capital Management LP, will seek to break up A&B.

Ackman’s firm, along with former Pershing Square partner Richard McGuire of San Francisco-based Marcato Capital Management LLC, disclosed yesterday after the stock market closed that they recently bought $168 million of A&B’s stock to give them a 9.9 percent stake.

Ackman and McGuire paid an average of $41.04 for their shares, making their stake worth about $224 million at today’s closing price, or $56 million more than the average paid.

Alexander & Baldwin stock jumps 19% after talk of break up – Hawaii News – Staradvertiser.com

Stock buy foments talk of local firm’s breakup

Published on April 1, 2011 in General Ag News and Notes and Sugar Cane.

One of Hawaii’s last venerable Big Five companies, Alexander & Baldwin Inc., could be under pressure to break itself up.

A New York hedge fund manager known to agitate for change in his investment targets bought nearly 10 percent of A&B along with a partner, it was announced yesterday. The purchase triggered expectations the 141-year-old kamaaina company will be split into pieces to elevate stock value.

Neither A&B nor the hedge funds would disclose what the intent of the A&B stock purchase — a $168 million deal — might be yesterday.

“We expect to have a constructive dialogue with them as we do with all of our shareholders,” said Suzy Hollinger, A&B’s director of investor relations.

But stock analysts with insights to A&B and people with ties to the 2,300-employee company say the play almost certainly is a breakup of the conglomerate’s three core businesses — ocean cargo transportation, commercial real estate and agriculture.

“Are the parts worth more than the whole? That’s what this comes down to,” said local stock analyst Randy Havre, echoing views of two other analysts who closely follow A&B. Continue reading ‘Stock buy foments talk of local firm’s breakup’

Mainland firms buy 9.9% stake in A&B

Published on March 31, 2011 in Coffee, General Ag News and Notes and Sugar Cane.

Two mainland investment firms have combined to purchase a 9.9 percent stake in Honolulu-based Alexander & Baldwin Co., according to a regulatory filing today.

New York-based Pershing Square Capital Management LP, led by activist hedge fund manager Bill Ackman, bought an 8.6 percent stake and San Francisco-based Marcato Capital Management LLC, led by Richard McGuire, acquired a 1.3 percent stake.

Mainland firms buy 9.9% stake in A&B – Hawaii News – Staradvertiser.com

Sweet Smell of Success

Published on December 3, 2010 in General Ag News and Notes and Sugar Cane.

The rain came down. The price went up, and Hawaiian Commercial & Sugar Co. finished the year with a much improved crop.

The final raw sugar shipment was loaded at Kahului Harbor’s Pier One on Wednesday and Thursday.

The harvest was just shy of 172,000 tons, much better than the 127,000 tons in 2009, but well short of the 200,000 tons the plantation can make in a good year.

In a telephone interview from New York on Thursday, HC&S General Manager Chris Benjamin said that although there is still “a ways to go,” the improved crop and better world prices take the immediate pressure off the plantation.

A year ago, after experiencing heavy losses attributed to a long drought, the directors of Alexander & Baldwin took a hard look at HC&S. The 37,000-acre plantation was the origin of the A&B conglomerate, but today it accounts for only about 7 percent of revenues.

The board approved continuation of the business only until the end of this year, pending improved results.

Financial results won’t be published until next year, but Benjamin said he believes that the board is already satisfied that the operation is on the right track.

At this week’s price of nearly 40 cents per pound of raw sugar (in New York), the crop would be worth more than $130 million, not counting molasses and electricity byproduct revenue, plus the premium for the part of the crop sold as specialty sugars. Continue reading ‘Sweet Smell of Success’

Alexander & Baldwin buys California shopping center

Published on November 29, 2010 in General Ag News and Notes.

Alexander & Baldwin Inc. has added a California neighborhood shopping center to its commercial real estate portfolio, paying $48 million for a 165,500-square-foot complex in Temecula, Calif.

The Honolulu-based company said it bought Rancho Temecula Town Center through subsidiary A&B Properties Inc., in part, using proceeds from a warehouse complex in Ontario, Calif., it sold in October for $43 million.

A&B said the shopping center, which was built three years ago and is 97 percent occupied, is one of Temecula’s best-performing retail properties and is expected to benefit from population growth.

Alexander & Baldwin buys California shopping center – Hawaii News – Staradvertiser.com

Spraying Pa’ia with 2,4-D – Is it safe?

Published on November 29, 2010 in Agricultural Equipment, General Ag News and Notes and Sugar Cane.

Early on Saturday, October 23 a blue helicopter with large spray wings attached sprayed the edges of the canefields in Pa‘ia. There were strong and variable winds and the spray blew directly into many nearby residences. Pa‘ia houses emptied as families stepped outside to gawk in awe as the flying sprayer made pass after pass along the canefields at the edge of town.

Moon Over Haleakala inquired of HC&S as to what was being sprayed so close to homes, children and old people – and why?

A&B spokesperson Meredith Ching was kind enough to find out what was going on and to send the Moon a detailed account of the spraying that day. Her full account and a sample of scientific controversy surrounding 2,4-D is on page 14. Our photo gallery of the spraying, and the links to internet sites describing the ongoing controversy surrounding health risks and the approvals for such wide use of 2,4-D are available at our website, mauimoonnews.com.

Below is Moon Over Haleakala staffer Madeline Ziecker’s personal account of events that Saturday morning. Continue reading ‘Spraying Pa’ia with 2,4-D – Is it safe?’

HC&S explains the Pa‘ia spraying incident

Published on November 29, 2010 in Farm Machinery, General Ag News and Notes and Sugar Cane.

By A&B spokesperson Meredith Ching

This is my understanding of the situation you have inquired about. On October 23, HC&S conducted an aerial application of an herbicide, Clean Amine, on its Field 212, located along Hana Highway, just west of Paia town. We were attempting to eliminate a noxious weed, castor bean, from the field, as it shades out the crop and depresses sugar yields. Aerial herbicide application was required because the 16-month old cane is too dense to allow access for ground spraying, and the weed height exceeded the canopy of the cane.

The active ingredient in Clean Amine is 2,4-D, which is among the most widely used weed control chemicals in the world and is present in a number of substances labeled for residential use. For more information about 2,4-D, refer to http://www.24d.org. This product is labeled for aerial application, and applications were made in compliance with the pesticide label. The mix used on Field 212 was a very diluted formulation, consisting of about 2% of 2, 4-D by weight.

We fully appreciate that the helicopter’s presence was likely startling for the residents. By design, they fly very low when applying the agricultural substances, for the very reason of minimizing drift and applying the substances most directly on the plants. Further, with this type of application of Clean Amine, the substance is only released when directly over the targeted weeds (which are very visible above the cane).

Further, when HC&S undertakes aerial applications on its fields, we generally do so in the morning when wind speeds are lower and more predictable; gusts and variable winds typically occur later in the day. Wind characteristics are an important factor for aerial applications, and one that HC&S carefully considers prior to any application. A spotter goes along on all aerial applications, monitors and records wind speeds and directions, and watches for any visual signs of drift so that prompt action can be taken to address it. Continue reading ‘HC&S explains the Pa‘ia spraying incident’

Sugar rush – Restating the Obvious by Harry Eagar – Mauinews.com

Published on November 5, 2010 in General Ag News and Notes, Sugar Cane and Water.

Funny how things work out. Our new mayor wants to take over plantation water systems (although when he had a chance four years ago, he backed down).

A couple of years ago, a combination of drought and low prices had HC&S on the ropes, and the board at A&B was beginning to wonder whether sugar was a business they wanted to be in. At best, it accounts for only about 7% of revenue. HC&S is such a small part of A&B that it cannot ever contribute largely to profits, although it can — and recently has — hammered them down.

Since A&B answers to Wall Street, which does not give a damn about Upcountry water meters, low sugar prices open the way to a county takeover of EMI. This would be a disaster, but, like I say, funny how things work out.

Arakawa’s in, sugar prices are up, A&B will presumably stick with HC&S for a while longer, the valley will be green and Kihei will not have to live through endless dust storms. Continue reading ‘Sugar rush – Restating the Obvious by Harry Eagar – Mauinews.com’

A&B earnings triple on strength of Matson’s China service and sugar operations

Published on November 3, 2010 in General Ag News and Notes and Sugar Cane.

Alexander & Baldwin Inc. tripled its third-quarter profit with greatly improved performances from its ocean transportation service in China and sugar business on Maui.

The Honolulu-based company reported today earning a net profit of $25.7 million, or 62 cents per diluted share of stock, in the July-September period, up from $8.5 million, or 21 cents per share, in the same period last year.

The big gain was largely from A&B’s ocean cargo subsidiary, Matson Navigation Co., which posted a 67 percent rise in operating profit to $40.4 million in the third quarter from $24.2 million a year earlier.

A&B said Matson’s performance was principally driven by higher volume and yields in its China service, which it expanded in mid-September.

Another contributor to the rise in profit was A&B’s Maui sugar subsidiary, Hawaiian Commercial & Sugar Co., which benefited from higher sugar prices and production.

HC&S, along with Kauai Coffee Co., delivered an $800,000 operating profit for A&B, which represents a $13 million improvement from a $13.8 million operating loss in the 2009 third quarter.

Operating profits from real estate leasing and sales were lower for A&B.

A&B earnings triple on strength of Matson’s China service and sugar operations – Hawaii News – Staradvertiser.com

Alexander & Baldwin buys Utah shopping center

Published on October 27, 2010 in General Ag News and Notes.

Alexander & Baldwin Inc. has added to its Utah real estate holdings with the purchase of a neighborhood shopping center in Sandy, Utah, for $20.5 million.

The Honolulu-based company said the purchase through subsidiary A&B Properties Inc. was made with tax-deferred proceeds from recent real estate sales, and becomes the third commercial property owned by A&B in the greater Salt Lake City area.

Sandy is Utah’s fifth-largest city, and is about 17 miles from downtown Salt Lake City.

The shopping center named Little Cottonwood Center contains 141,600 square feet of leasable space that is 97 percent occupied and anchored by a local super market. Other tenants include McDonald’s, Starbucks and Texaco.

Alexander & Baldwin buys Utah shopping center – Hawaii News – Staradvertiser.com

Maui Nei

Published on September 23, 2010 in General Ag News and Notes and Sugar Cane.

The 25-passenger van slammed into a deep trench. Rotarians and court reporters bounced out of their seats. The abused van’s windows rattled while keeping heat and dust at bay. A small air conditioner at the rear of the vehicle provided marginal cooling.

Driver Tony Vierra – one of only two men allowed to take Roberts Hawaii vans into the fields – tried to miss the biggest holes in the sugar fields’ “roads,” but there was no way to avoid them all. The benign jostling and, later, the heat in the mill were the most uncomfortable parts of a slick, six-hour Hawaiian Commercial & Sugar Co. tour Saturday.

It began at 8 a.m. in a conference room in the old Puunene headquarters. Despite the hour, tour coordinator Linda Howe radiated city energy. She and agronomist Mae Nakahata had come over from Alexander & Baldwin’s Honolulu headquarters. Howe attended to the sign-in sheets, name tags, liability waivers and menus for lunch.

The Rotarians were from Kihei. The court reporters had come to Maui for a meeting of the Court Stenographers and Captioners Association. It was a convivial group sincerely interested in learning more about HC&S. One Mainland retiree liked to talk about his experiences as an employee at a sugar beet operation. It was somewhat annoying and definitely off the point of the tour – lobbying on behalf of the sugar company via candid education. The syllabus centered on sustainability and the production of energy. Continue reading ‘Maui Nei’

A&B to study effects of proposed development

Published on September 2, 2010 in General Ag News and Notes.

WAILUKU – Sixty years ago, when Hawaiian Commercial & Sugar Co. was drawing up the plans for Dream City, its managers foresaw the day when Kahului would extend to what was then called Waiale Pastures.

That time is still years off, but it is close enough that A&B Properties has filed a preparatory notice with the Land Use Commission in anticipation of an environmental impact statement for reclassification of 545 acres on either side of Waiko Road.

“This will be a yearslong process before we are able to do anything physically on the property,” A&B Properties Vice President Grant Chun said Wednesday.

The proposal calls for about 2,550 dwellings, with village mixed-use, commercial and light-industrial areas, a regional park, community center, neighborhood parks, sites for a cultural preserve, a school and related infrastructure. In other words, something similar to Maui Lani, which lies along the northern boundary of the new area.

The project extends in a rough triangle, with a long frontage on Kuihelani Highway. A&B does not own a section north of Waiko Road that is being rapidly developed for light industrial uses. Its plan would include another 16 or 17 acres of light industrial in the area.

Chun describes the area as mostly flat, sandy and never cultivated. Tenants are using much of the land for cattle. Continue reading ‘A&B to study effects of proposed development’