Agribusiness result expected to improve this year
By HARRY EAGAR, Staff Writer
POSTED: February 4, 2010
Alexander & Baldwin’s agricultural sector lost $27.8 million in 2009, primarily at Hawaiian Commercial & Sugar Co., and the whole corporation’s profits fell to $44.2 million from the $132.4 million of 2008.
Gross revenue fell $475 million from the $1.88 billion of 2008 to $1.4 billion last year.
Net income in 2009 was $1.08 per share, the company reported Wednesday, down from $3.19 the year before.
The results from the agricultural segment had been expected. Drought pushed sugar production down to 126,800 tons, which was 28,400 tons less than the unprecedentedly low production in 2008 and 75,000 tons under what would be expected in a normal year.
The agricultural results would have been even worse, but Gay & Robinson on Kauai quit making sugar, although it plans to continue growing cane for ethanol. G&R and HC&S were the last members of a cooperative. G&R’s withdrawal terminated the membership, which resulted in a $5.4 million gain not from operations for HC&S. Without that, A&B’s agricultural losses would have been about 20 percent higher.
Last week, A&B’s board announced it would continue to operate HC&S through the end of this year, but no commitments beyond that were made.
Although Kauai Coffee, which is included in A&B’s agriculture results, enjoyed better prices and higher income in 2009, the segment’s turnover fell $17.3 million to $107 million.
