The 4Q22 operating income of Ocean Transportation is expected to be $70.0 arrive $80 million
The estimated 4Q22 logistics revenue is $12.0 arrive $13 million
4Q22 net income and diluted EPS are expected to be $69.9 arrive $74.8 million and $1.88 arrive $2.01respectively
The year-on-year decrease in consolidated operating income was mainly due to the China Serve
Repurchased approximately 1.5 million shares in 4Q22
Announcement of Date for Fourth Quarter Earnings Conference Call February 21, 2023
honolulu, January 18, 2023 /PRNewswire/ — Matson, Inc. (“Matson” or the “Company”) (NYSE: MATX ) today reported preliminary fourth quarter financial results, provided a business update and announced its fourth quarter earnings call will be February 21, 2023.
“In a difficult business environment, Matson’s ocean transportation and logistics business unit performed well,” said Chairman and CEO Matt Cox. “In ocean transportation, our China Service achieved year-over-year declines and shipping rates, which resulted in a decline in our consolidated operating income. As we mentioned on our November earnings call, we expect the fourth quarter of 2022 and the first quarter of 2023 to be challenging on the trans-Pacific trade lane as retailers stock up on levels based on consumer demand levels adjustments, and ocean liners will reduce capacity to meet lower demand levels. For now, in the transpacific market, business conditions remain challenging as retailers continue to resize inventory due to weak consumer demand, rising interest rates and economic uncertainty. As a result, we expect our CLX and CLX+ services in the first quarter and first half to reflect lower-than-normal levels of freight demand, year-over-year declines and a lower rate environment. In the absence of an economic “hard landing” in the US, we expect trade dynamics to improve in the second half of 2023 as the transpacific market transitions to more normal demand levels. Regardless of the economic environment, we operate two of the fastest and most reliable ocean freight services, and as such, we expect to continue to command a significant premium over the Shanghai Containerized Freight Index. “
gentlemen.Cox added, “In our domestic ocean trade lanes, we’re seeing hawaii, Alaska and Guam Compared with the same period last year.Down hawaii Compared with the higher epidemic level in the same period last year, the sales volume was mainly due to the decline in retail and hotel related demand. In logistics, the year-over-year decrease in operating income was primarily due to a lower contribution from supply chain management, consistent with lower demand on the trans-Pacific trade lane.Accordingly, Matson expects Ocean Transportation’s operating income for the fourth quarter to be $70.0 arrive $80 million and logistics operating income $12.0 arrive $13 million. We also expect fourth quarter 2022 net income and diluted EPS to be $69.9 arrive $74.8 million and $1.88 arrive $2.01, respectively. “
Fourth Quarter Trade Lane Volume (Forty Feet Equivalent Units (FEU))(1)(2):
up to three months December 31, 2022 Compared to the three months ended December 31, 2021, on an FEU basis:
hawaii Container throughput fell by 13.0%, mainly due to lower retail and hotel-related demand and a shorter week;
Alaska The 7.7% decline in cargo volumes was primarily due to (i) lower northbound cargo volumes largely due to one fewer sailing and one week less, and (ii) southbound volumes mainly due to one week fewer domestic seafood volumes, with some Offset by higher volumes of exported seafood Alaska-Asia Express (“AAX”);
China Volume decreased by 47.2%, primarily due to (i) lower demand for CLX and CLX+ services, (ii) discontinuation of CCX services in the third quarter of 2022, and (iii) one less week;
Guam Volumes decreased by 14.0%, primarily due to lower retail-related demand; and
Other container volumes fell by 10.7%.
(1) The approximate volumes included in the period are based on the voyage departure date, but with revenue and operating income 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.
(2) Other containers include service containers from various islands in China Micronesia and the South Pacific, and Okinawa, Japan.
Liquidity, Debt and Share Buybacks
Matson’s cash and cash equivalents as or December 31, 2022 approximately $250 millionthis does not include $518.2 million Infrastructure Fund Cash Deposits.Total debt (shown before reduction of deferred loan charges in accordance with GAAP requirements) as of December 31, 2022 wash $517.5 million.
In the fourth quarter of 2022, Matson repurchased approximately 1.5 million shares at a total cost of $101.9 million. if or December 31, 2022the company has approximately 1.5 million shares remaining in its share repurchase program.
A slide presentation accompanying this press release is available on the Investors section of the company’s website at www.matson.com.
Conference Calls and Webcasts
Conference call scheduled for February 21, 2023 at 4:30 p.m. ET when Matt CoxChairman and Chief Executive Officer, and JoelExecutive Vice President and Chief Financial Officer, will discuss Matson’s fourth quarter results.
conference call date
Tuesday, February 21, 2023
4:30pm ET / 1:30pm PT / 11:30am ET
The conference call will be broadcast live on the company’s website at www.matson.com under Investors with an additional slide presentation.
Participants can register for the conference call at:
Registered participants will receive a conference call dial-in number and a unique PIN to access the live event. While not required, it is recommended that you join 10 minutes before the event start time. A replay of the conference call will be available approximately two hours after the event by visiting the webcast link under Investors on www.matson.com.
About the company
Founded in 1882, Matson (NYSE: MATX ) is a leading provider of ocean transportation and logistics services. Matson provides vital lifeline to domestic non-contiguous economies hawaii, Alaskaand Guam, and other island economies in Micronesia. Matson also operates a premium expedited service China arrive long beach californiaProvide services Okinawa, Japan And South Pacific islands, operating international export business Dutch Harbor to Asia. The company’s owned and chartered fleet includes containerships, container combination vessels and ro-ro vessels, as well as custom-designed barges. Matson Logistics was established in 1987 to expand the geographic reach of the Matson transportation network throughout North America. Its integrated asset-light logistics services include rail intermodal transport, road brokerage, warehousing, freight consolidation, Asia Supply chain services and transshipment to Alaska. For more information on the company, visit 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, statements about performance and financial results, volume and shipping levels, retailers’ inventories, consumption Levels of buyer demand, vessel capacity, interest rates, economic uncertainty, trade dynamics, business conditions in the transpacific market, the rate environment and Matson’s rate premium to the Shanghai Containerized Freight Index.These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated in the related forward-looking statements, including, but not limited to, risks and uncertainties related to the repeal, substantial modification or waiver of the Jones Act or its related application, or our failure to maintain our United States Citizenship under the Jones Act; changes in macroeconomic conditions, geopolitical developments, or government policy, including changes from the COVID-19 pandemic; our ability to provide differentiated services China Customers are willing to pay a high premium for this; New or increased competition or improved service levels from competitors; Changes to our relationships with, and related agreements with, our customers, agents, suppliers and partners; capacity and/or cost of required fuel or limited supply; changing stakeholder expectations on environmental, social and governance matters; timely or successful completion of fleet upgrade plans; severe weather, natural disasters, maritime accidents The occurrence of , spill incidents and other physical and operational risks, including those arising from climate change; Transition risks and other risks arising from climate change; The extent and timing of the impact of public health crises, including COVID-19; Not substitutable on favorable terms any unexpected drydock or maintenance costs; joint venture relationships; doing business in foreign shipping markets, including the imposition of tariffs or changes in international trade policy; any delays or cost overruns related to terminal modernization; war, Terrorist attacks or other acts of violence; refinement and integration of acquisitions; relations with our labor unions; satisfactorily negotiating and renewing expired collective bargaining agreements without material impact on Matson operations; loss of key personnel or failure to adequately manage human capital; use of our information technology and communications systems and cybersecurity attacks; changes in our credit profile and future financial performance; our ability to obtain future debt financing; continuation of Title XI and CCF programs; compliance with numerous security, environmental and other laws Costs of regulations and related liabilities; and Disputes, legal and other proceedings and government inquiries or investigations. These forward-looking statements are not guarantees of future performance.This press 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 Securities and Exchange Commission on the date of this news release, which identify important factors that could affect the forward-looking statements contained in this news release. We disclaim any obligation to update forward-looking statements.
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SOURCE Matson Corporation