WAILUKU – Nearly six months after recommending that Hawaiian Commercial & Sugar Co. restore water to only one of 19 streams in East Maui, staffers for the state Commission on Water Resource Management have changed their minds – at the direction of balance-seeking commissioners in the heated controversy.
If commissioners follow the advice signed off by Deputy Director Ken Kawahara, HC&S will have to return water to a total of 14 of 27 streams in the East Maui watershed. Kawahara’s 64-page staff report advocates that six streams get some of their water back, totaling 10.46 million gallons a day.
The report was issued in time for a meeting at 1 p.m. Tuesday at the Paia Community Center, where a number of decisions could be made. It’s a continuation of a meeting held in December when commissioners asked the staff and different sides to come back with more information and new compromises.
Since the public will be given an opportunity to testify and all the sides are asked to give presentations about their own recommendations, two additional meetings are scheduled for June 16 and June 21. The last meetings drew more than 100 speakers a day.
WAILUKU – A U.S. Geological Survey study 4 years in the making and released this week describes the effects of taking millions of gallons of water daily from "the Four Streams" of Na Wai Eha that originate in the West Maui Mountains.
USGS also presented a complex matrix showing the amounts of stream water needed to return to each of the Central Maui streams to revitalize flora, fauna and aquatic life; to recharge the aquifer and to promote taro growing. The report also details the amount of water necessary to resume mauka-to-makai, or mountain-to-ocean stream flow, something not seen for more than a century of stream diversions to irrigate sugar crops.
"The idea is to give people and the commissioners the tools to understand the effects of a decision to divert water and adjust those diversions," said USGS hydrologist Delwyn Oki, who presented the findings of his 176-page report to about 50 people in Maui Economic Opportunity’s classroom Tuesday night.
The Last Sugar Mill in Hawaii HC&S Puunene Maui CLICK HERE for larger imageAlexander & Baldwin, Inc. (ALEX)
Q1 2010 Earnings Call Transcript
May 4, 2010 5:00 pm ET
Executives
Suzy Hollinger – Director, IR
Stan Kuriyama – President & CEO
Matt Cox – President, Matson Navigation Company, Inc.
Norb Buelsing – President, A&B Properties, Inc.
Chris Benjamin – SVP, CFO & Treasurer; General Manager, HC&S
Analysts
William Horner – Stephens Incorporated
Sloan Bohlen – Goldman Sachs
Sheila McGrath – KBW
Brendan Maiorana – Wells Fargo
Tom Wilson – Wilson Capital Management
Tom Spiro – Spiro Capital Management
Presentation
Operator
Good day, ladies and gentlemen. Welcome to the first quarter Alexander & Baldwin earnings conference call. My name is O'Meara and I will be your operator for today. At this time, all participants are in listen-only mode. Later, we will be conducting a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I would now like to turn this conference over to your host for today’s call, Ms. Suzy Hollinger, Director of Investor Relations. Please proceed.
Suzy Hollinger
Thank you, operator. Aloha and welcome to Alexander & Baldwin's first quarter 2010 earnings call. On the call with me today are Stan Kuriyama, A&B's President and CEO; Chris Benjamin, A&B's CFO and also General Manager of HC&S; Norb Buelsing, President of A&B Properties; and joining us from Matson's headquarters in Oakland is Matt Cox, President of Matson Navigation Company.
Before we commence, please note that statements in this call and presentation that set forth expectations or predictions are based on facts and situations that are known to us as of today, May 04, 2010. Actual results may differ materially due to risks and uncertainties such as those described on pages 17 through 26 of our 2009 Form 10-K and our other subsequent filings with the SEC. Statements in this call and presentation are not guarantees of future performance.
Slides from this presentation are available for download at our website www.alexanderbaldwin.com. You will see an icon at the top of the website to direct you to the appropriate section for download.
This slide provides an agenda for our presentation, after which we will take your questions. We will start with Stan who will comment on the performance for the quarter.
Stan Kuriyama
Thank you, Suzy. I'm pleased to report that A&B posted a solid first quarter and a positive start to 2010. Net income was significantly higher in the first quarter at $17 million or $0.42 per share compared to earnings in the first quarter of 2009 of $3 million or $0.07 a share.
As you'll note from this chart, operating results for all segments improved in the first quarter of 2010 with the exception of real estate leasing. Consolidated operating profit was $42 million in the quarter compared to $17 million a year ago. However, our first quarter '09 operating profit was impacted by a $6 million workforce reduction charge that did not recur in the first quarter of 2010.
Let me now brief you on the quarter highlights from each of our business units. In ocean transportation, our China service is benefitting from the recovery in both volume and rates. Volumes in particular were significantly higher than a year ago and rates are higher on a sequential basis. Matt will have more details for you later in the presentation.
Hawaii container volumes and rates were relatively flat in the quarter compared to last year. While we believe that material increases in volumes and rates are unlikely for the rest of the year, we are pleased that the Hawaii trade seems to have bottomed. Guam's performance was also stable for the quarter. Overall, operating profits in our ocean transportation business continue to benefit from the vessel deployment changes, workforce reduction, and other cost cutting and operating efficiencies implemented over the past two years.
First quarter operating results for MIL benefitted from a large movement for the Department of Defense, as well as from prior year's cost cutting measures. Some stabilization in MIL's intermodal business also occurred in the quarter. In real estate, we continue to observe demand and favorable pricing for quality commercial properties as evidenced by our sales of Mililani Shopping Center in January. This sale drove quarter results for this segment, as well as for the overall company.
Leasing, however, was challenged by several factors; the downward reset of market rents, lower occupancies in our Mainland portfolio, and the time lag between sales and acquisitions of properties in our 1031 exchange program. Norbert would be addressing this further in our presentation.
Agribusiness results improved in the quarter with losses declining by $800,000. However, we didn’t plan on harvesting any sugar in the first quarter, meaningful performance comparisons can't be made until the second quarter. As Chris will describe later, we continue to expect significant improvement for the full year and we recently learned federal grant monies will be made available to help us accelerate our bioenergy research at HC&S.
Hawaiian Commercial & Sugar Company (HC&S) today announced that it is at the center of significant new Hawaii-based research initiatives on biofuels, working closely with the University of Hawaii and various federal agencies to realize the promise of expanded production of clean, renewable energy.
In today’s announcement, HC&S noted support from Sen. Daniel K. Inouye in detailing annual federal funding of at least $4 million that will be made available through two separate programs, one funded by the Department of Energy (DOE) and the other by the Navy’s Office of Naval Research (ONR), to conduct research at HC&S.
The DOE funding of $2 million annually will be directed to research on energy crop development and energy conversion technologies to be conducted by the University’s College of Tropical Agriculture and Human Resources (CTAHR). The ONR funding, also $2 million annually, will support complementary crop and technology assessments, as well as an evaluation of long-term resource requirements for biomass production. In announcing the ONR portion of the funding, US Department of Agriculture Deputy Secretary Kathleen Merrigan said the USDA would direct the research initiatives, providing $2 million per year through 2015, to help Hawaii accelerate sustainable biofuel feedstock production.
