Alexander & Baldwin, Inc. (NYSE: ALEX) is a Honolulu-based company that was once part of the Big Five companies in territorial Hawaii. The company today operates businesses in shipping, sugar cane, real estate, and diversified agriculture. It is also the only "Big Five" company that still cultivates sugar cane. It remains one of the State of Hawaii's largest private landowners, owning about 89,000 acres (36,000 ha) throughout the state. In addition, the company owns over a dozen income properties in the continental United States.
Alexander & Baldwin has its headquarters in downtown Honolulu at the Alexander & Baldwin Building, which was built in 1929.
Alexander & Baldwin, Inc. (A&B), incorporated in 1900, together with its subsidiaries, is engaged in property development and agribusiness operations. The Company’s wholly owned subsidiary Matson Navigation Company, Inc. (Matson), together with its two subsidiaries, is engaged in ocean transportation operations, related shoreside operations in Hawaii, and intermodal, truck brokerage and logistics services. The Company operates in five segments in three industries: Transportation, Real Estate and Agribusiness. The Transportation Industry consists of Ocean Transportation and Logistics Services segments. The Real Estate Industry consists of two segments, both of which have operations in Hawaii and on the United States Mainland. Agribusiness, a division of A&B, produces and transports bulk raw sugar, specialty food grade sugars and molasses. In June 2009, the Company announced that its real estate subsidiary, A&B Properties, Inc., sold Hawaii Business Park (HBP), a 85,200 square-foot, three-building warehouse complex in Pearl City, Oahu.
Transportation
The Company’s Transportation segment carries out activities, such as freight services; arranging domestic and international rail intermodal service, long-haul and regional highway brokerage, specialized hauling, flat-bed and project work, less-than-truckload, expedited/air freight services, and warehousing and distribution services. It also provides terminal, stevedoring and container equipment maintenance services in Hawaii. The Ocean Transportation segment, which is conducted through Matson, is an asset-based business that derives its revenue primarily through the carriage of containerized freight between various United States Pacific Coast, Hawaii, Guam, China and other Pacific island ports. In addition, the Ocean Transportation segment has a 35% interest in an entity that provides terminal and stevedoring services at the United States Pacific Coast facilities.
The Logistics Services segment, which is conducted through the Company’s wholly owned subsidiary Matson Integrated Logistics, Inc. (MIL), is a provider of domestic and international rail intermodal service (Intermodal), long-haul and regional highway brokerage, specialized hauling, flat-bed and project work, less-than-truckload, expedited/air freight services, and warehousing and distribution services (collectively Highway). Warehousing and distribution services are provided by Matson Global Distribution Services, Inc. (MGDS), a wholly owned subsidiary of MIL. MGDS’s operations also include Pacific American Services, LLC (PACAM), a regional warehousing, packaging, and distribution company.
The Company’s Transportation segment includes various services provided through Matson, which includes freight services, vessels, terminals, and logistics and other services. Matson's Hawaii Service offers containership freight services between the ports of Long Beach, Oakland, Seattle and the other ports in Hawaii on the islands of Oahu, Kauai, Maui and Hawaii. Roll-on/roll-off service is provided between California and the ports in Hawaii. Matson's Guam Service provides containership freight services between the United States Pacific Coast and Guam . Matson's Micronesia Service offers container and conventional freight services between the United States Pacific Coast and the islands of Kwajalein, Ebeye and Majuro in the Republic of the Marshall Islands and the islands of Pohnpei, Chuuk and Kosrae in the Federated States of Micronesia. Matson also carries cargo originating in Asia to these islands by receiving cargo transferred from other carriers in Guam.
Matson’s China Service is part of an integrated Hawaii/Guam/China service. The service employs five Matson containerships in a weekly service that carries cargo from the United States Pacific Coast to Honolulu, then to Guam. The vessels continue to China, where they are loaded with cargo to be discharged in Long Beach. Matson also serves the Commonwealth of Northern Marianas, the Republics of Palau and the Republic of the Marshall Islands. Matson's fleet consists of 10 containerships, excluding one containership time-chartered from a third party that serves Micronesia; three combination container/ roll-on/roll-off ships; one roll-on/roll-off barge and two container barges equipped with cranes that serve the neighbor islands of Hawaii, and one container barge equipped with cranes that is available for charter. As a complement to its fleet, Matson owns approximately 23,500 containers, 14,300 container chassis, 900 auto-frames and miscellaneous other equipment.
Matson Terminals, Inc. (Matson Terminals), a wholly owned subsidiary of Matson, provides container stevedoring, container equipment maintenance and other terminal services for Matson and other ocean carriers at its 105-acre marine terminal in Honolulu. Matson Terminals owns and operates seven cranes at the terminal, which handled approximately 335,400 lifts as of December 31, 2009. SSA Terminals, LLC (SSAT), a joint venture of Matson Ventures, Inc., a wholly owned subsidiary of Matson, and SSA Ventures, Inc. (SSA), provides terminal and stevedoring services at United States Pacific Coast terminal facilities to Matson and numerous international carriers. Matson Integrated Logistics, Inc. (Matson Integrated Logistics), a wholly owned subsidiary of Matson, provides rail, highway, air and other third-party logistics services for North American and international ocean carrier customers, including Matson. Matson Global Distribution Services, Inc. (Matson Global) is a wholly owned subsidiary of Matson Integrated Logistics that principally provides warehousing and distribution services.
Real Estate
The Company’s real estate segment is engaged in real estate development and ownership activities, including planning, zoning, financing, constructing, purchasing, managing and leasing, selling and exchanging, and investing in real property. The Real Estate sales segment generates its revenues through the development and sale of land and commercial and residential properties. The Real Estate leasing segment owns, operates, and manages retail, office, and industrial properties. Real estate activities are conducted through A&B Properties, Inc. and various other wholly owned subsidiaries of A&B.
As of December 31, 2009, A&B and its subsidiaries, including A&B Properties, Inc. owned approximately 88,925 acres, consisting of approximately 88,475 acres in Hawaii and approximately 450 acres on the United States mainland. The bulk of this acreage is used for agricultural, pasture, watershed and conservation purposes. A portion of these lands is used or planned for development or other urban uses. An additional 2,915 acres on Maui, Kauai and Oahu are leased from third parties. A&B and its subsidiaries are involved in the entire spectrum of real estate development and ownership, including planning, zoning, financing, constructing, purchasing, managing and leasing, selling and exchanging, and investing in real property. A&B is pursuing a number of residential projects in Hawaii, including Wailea, Kai Malu at Wailea, Haliimaile Subdivision, Kane Street Development and Kahului Town Center in Maui; Kukui ula and Port Allen in Kauai; Keola Lai and Waiawa in Oahu; Ka Milo at Mauna Lani in Big Island of Hawaii; Santa Barbara Ranch in the United States Mainland; Commercial Properties; Hawaii Properties, and the United States Mainland Properties, including Crossroads Plaza, Centre Pointe Marketplace, Bridgeport Marketplace, Bakersfield, and Palmdale Trade and Commerce Center.
Agribusiness
The Company’s Agribusiness segment produces, markets, and distributes green coffee, roasted coffee, and specialty food-grade sugars; provides general trucking services, mobile equipment maintenance, and repair services, and generates and sells electricity. A&B’s agribusiness and related operations consist of a sugar plantation on the island of Maui, operated by its Hawaiian Commercial & Sugar Company (HC&S) division; a coffee plantation on the island of Kauai, operated by its Kauai Coffee Company, Inc. (Kauai Coffee) subsidiary, and its Kahului Trucking & Storage, Inc. (KT&S) and Kauai Commercial Company, Incorporated (KCC) subsidiaries, which provide several types of trucking services, including sugar and molasses hauling on Maui, mobile equipment maintenance and repair services on Maui, Kauai, and the Big Island, and self-service storage facilities on Maui and Kauai.
In 2009, HC&S produced approximately 126,800 tons of raw sugar. As a by-product of sugar production, HC&S also produced approximately 41,700 tons of molasses in 2009. In 2009, approximately 34,300 tons of sugar was processed by HC&S into specialty food-grade sugars under the HC&S's Maui Brand trademark or repackaged by distributors under their own labels.
During 2009, Kauai Coffee had approximately 3,000 acres of coffee trees under cultivation. The 2009, harvest yielded approximately 2.6 million pounds of green coffee. HC&S and McBryde Sugar Company, Limited (McBryde), a subsidiary of A&B and the parent company of Kauai Coffee, produce electricity for internal use and for sale to the local electric utility companies. HC&S's power is produced by burning bagasse (the residual fiber of the sugar cane plant), by hydroelectric power generation and, when necessary, by burning fossil fuels. McBryde produces power solely by hydroelectric generation.
The Company competes with Horizon Lines, Inc., Pasha Hawaii Transport Lines, LLC, Maersk, COSCO, Evergreen, Hanjin, APL, China Shipping, Hyundai, NYK Line, C.H. Robinson Worldwide and the Hub Group
A&B-Hawaii, Inc.; A&B Development Company; A&B Properties, Inc.; California and Hawaiian Sugar Company; East Maui Irrigation Company, Ltd.; Kahului Trucking & Storage, Inc.; Kauai Commercial Company, Inc.; Kukui'ula Development Company, Inc.; McBryde Sugar Company, Ltd.; South Shore Community Services, Inc.; South Shore Resources, Inc.; WDCI, Inc.; Matson Navigation Company, Inc.; Matson Intermodal System, Inc.; Matson Leasing Company, Inc.; Matson Services Company, Inc.; Matson Terminals, Inc.
Statistics:
Public Company
Incorporated: 1900 as Alexander & Baldwin, Ltd.
Employees: 3,709
Sales: $979.5 million
Stock Exchanges: NASDAQ
SICs: 4423 Deep Sea Domestic Transportation of Freight; 2061 Raw Cane Sugar; 7359 Equipment Rental & Leasing Nec; 6552 Subdividers & Developers Nec
OVERALL
Beta: 1.46
Market Cap (Mil.): $2,197.29
Shares Outstanding (Mil.): 41.56
Annual Dividend: 1.26
Yield (%): 2.38
FINANCIALS
ALEX.K Industry Sector
P/E (TTM): 37.07 12.00 17.41
EPS (TTM): 552.09 -- --
ROI: 2.80 5.31 3.06
ROE: 5.32 10.00 5.59
Name Age Since Current Position
Dods, Walter 69 2010 Independent Non-Executive Chairman of the Board
Kuriyama, Stanley 57 2010 President, Chief Executive Officer, Director
Benjamin, Christopher 47 2006 Chief Financial Officer, Senior Vice President, Treasurer
Cox, Matthew 49 2008 President of Matson Navigation Company
Buelsing, Norbert 59 2008 President of A & B Properties, Inc.
Ching, Meredith 54 2007 Senior Vice President - Government & Community Relations
Chun, Nelson 58 2005 Senior Vice President, Chief Legal Officer
Ito, Paul 40 2007 Vice President, Controller
Paik, Son-Jai 38 2007 Vice President - Human Resources
Nakamura, Alyson 45 1999 Secretary
Doane, W. Allen 63 2010 Independent Director
Chun, Michael 67 1990 Independent Director
King, Charles 65 1989 Independent Director
Shaw, Maryanna 71 1980 Independent Director
Watanabe, Jeffrey 68 2003 Independent Director
Lau, Constance 59 2004 Independent Director
Pasquale, Douglas 56 2005 Independent Director
Baird, W. Blake 50 2006 Independent Director
Address:
822 Bishop St.
P.O. Box 3440
Honolulu, Hawaii 96801-3440
U.S.A.
Alexander & Baldwin has its headquarters in downtown Honolulu at the Alexander & Baldwin Building, which was built in 1929.
Alexander & Baldwin, Inc. (A&B), incorporated in 1900, together with its subsidiaries, is engaged in property development and agribusiness operations. The Company’s wholly owned subsidiary Matson Navigation Company, Inc. (Matson), together with its two subsidiaries, is engaged in ocean transportation operations, related shoreside operations in Hawaii, and intermodal, truck brokerage and logistics services. The Company operates in five segments in three industries: Transportation, Real Estate and Agribusiness. The Transportation Industry consists of Ocean Transportation and Logistics Services segments. The Real Estate Industry consists of two segments, both of which have operations in Hawaii and on the United States Mainland. Agribusiness, a division of A&B, produces and transports bulk raw sugar, specialty food grade sugars and molasses. In June 2009, the Company announced that its real estate subsidiary, A&B Properties, Inc., sold Hawaii Business Park (HBP), a 85,200 square-foot, three-building warehouse complex in Pearl City, Oahu.
Transportation
The Company’s Transportation segment carries out activities, such as freight services; arranging domestic and international rail intermodal service, long-haul and regional highway brokerage, specialized hauling, flat-bed and project work, less-than-truckload, expedited/air freight services, and warehousing and distribution services. It also provides terminal, stevedoring and container equipment maintenance services in Hawaii. The Ocean Transportation segment, which is conducted through Matson, is an asset-based business that derives its revenue primarily through the carriage of containerized freight between various United States Pacific Coast, Hawaii, Guam, China and other Pacific island ports. In addition, the Ocean Transportation segment has a 35% interest in an entity that provides terminal and stevedoring services at the United States Pacific Coast facilities.
The Logistics Services segment, which is conducted through the Company’s wholly owned subsidiary Matson Integrated Logistics, Inc. (MIL), is a provider of domestic and international rail intermodal service (Intermodal), long-haul and regional highway brokerage, specialized hauling, flat-bed and project work, less-than-truckload, expedited/air freight services, and warehousing and distribution services (collectively Highway). Warehousing and distribution services are provided by Matson Global Distribution Services, Inc. (MGDS), a wholly owned subsidiary of MIL. MGDS’s operations also include Pacific American Services, LLC (PACAM), a regional warehousing, packaging, and distribution company.
The Company’s Transportation segment includes various services provided through Matson, which includes freight services, vessels, terminals, and logistics and other services. Matson's Hawaii Service offers containership freight services between the ports of Long Beach, Oakland, Seattle and the other ports in Hawaii on the islands of Oahu, Kauai, Maui and Hawaii. Roll-on/roll-off service is provided between California and the ports in Hawaii. Matson's Guam Service provides containership freight services between the United States Pacific Coast and Guam . Matson's Micronesia Service offers container and conventional freight services between the United States Pacific Coast and the islands of Kwajalein, Ebeye and Majuro in the Republic of the Marshall Islands and the islands of Pohnpei, Chuuk and Kosrae in the Federated States of Micronesia. Matson also carries cargo originating in Asia to these islands by receiving cargo transferred from other carriers in Guam.
Matson’s China Service is part of an integrated Hawaii/Guam/China service. The service employs five Matson containerships in a weekly service that carries cargo from the United States Pacific Coast to Honolulu, then to Guam. The vessels continue to China, where they are loaded with cargo to be discharged in Long Beach. Matson also serves the Commonwealth of Northern Marianas, the Republics of Palau and the Republic of the Marshall Islands. Matson's fleet consists of 10 containerships, excluding one containership time-chartered from a third party that serves Micronesia; three combination container/ roll-on/roll-off ships; one roll-on/roll-off barge and two container barges equipped with cranes that serve the neighbor islands of Hawaii, and one container barge equipped with cranes that is available for charter. As a complement to its fleet, Matson owns approximately 23,500 containers, 14,300 container chassis, 900 auto-frames and miscellaneous other equipment.
Matson Terminals, Inc. (Matson Terminals), a wholly owned subsidiary of Matson, provides container stevedoring, container equipment maintenance and other terminal services for Matson and other ocean carriers at its 105-acre marine terminal in Honolulu. Matson Terminals owns and operates seven cranes at the terminal, which handled approximately 335,400 lifts as of December 31, 2009. SSA Terminals, LLC (SSAT), a joint venture of Matson Ventures, Inc., a wholly owned subsidiary of Matson, and SSA Ventures, Inc. (SSA), provides terminal and stevedoring services at United States Pacific Coast terminal facilities to Matson and numerous international carriers. Matson Integrated Logistics, Inc. (Matson Integrated Logistics), a wholly owned subsidiary of Matson, provides rail, highway, air and other third-party logistics services for North American and international ocean carrier customers, including Matson. Matson Global Distribution Services, Inc. (Matson Global) is a wholly owned subsidiary of Matson Integrated Logistics that principally provides warehousing and distribution services.
Real Estate
The Company’s real estate segment is engaged in real estate development and ownership activities, including planning, zoning, financing, constructing, purchasing, managing and leasing, selling and exchanging, and investing in real property. The Real Estate sales segment generates its revenues through the development and sale of land and commercial and residential properties. The Real Estate leasing segment owns, operates, and manages retail, office, and industrial properties. Real estate activities are conducted through A&B Properties, Inc. and various other wholly owned subsidiaries of A&B.
As of December 31, 2009, A&B and its subsidiaries, including A&B Properties, Inc. owned approximately 88,925 acres, consisting of approximately 88,475 acres in Hawaii and approximately 450 acres on the United States mainland. The bulk of this acreage is used for agricultural, pasture, watershed and conservation purposes. A portion of these lands is used or planned for development or other urban uses. An additional 2,915 acres on Maui, Kauai and Oahu are leased from third parties. A&B and its subsidiaries are involved in the entire spectrum of real estate development and ownership, including planning, zoning, financing, constructing, purchasing, managing and leasing, selling and exchanging, and investing in real property. A&B is pursuing a number of residential projects in Hawaii, including Wailea, Kai Malu at Wailea, Haliimaile Subdivision, Kane Street Development and Kahului Town Center in Maui; Kukui ula and Port Allen in Kauai; Keola Lai and Waiawa in Oahu; Ka Milo at Mauna Lani in Big Island of Hawaii; Santa Barbara Ranch in the United States Mainland; Commercial Properties; Hawaii Properties, and the United States Mainland Properties, including Crossroads Plaza, Centre Pointe Marketplace, Bridgeport Marketplace, Bakersfield, and Palmdale Trade and Commerce Center.
Agribusiness
The Company’s Agribusiness segment produces, markets, and distributes green coffee, roasted coffee, and specialty food-grade sugars; provides general trucking services, mobile equipment maintenance, and repair services, and generates and sells electricity. A&B’s agribusiness and related operations consist of a sugar plantation on the island of Maui, operated by its Hawaiian Commercial & Sugar Company (HC&S) division; a coffee plantation on the island of Kauai, operated by its Kauai Coffee Company, Inc. (Kauai Coffee) subsidiary, and its Kahului Trucking & Storage, Inc. (KT&S) and Kauai Commercial Company, Incorporated (KCC) subsidiaries, which provide several types of trucking services, including sugar and molasses hauling on Maui, mobile equipment maintenance and repair services on Maui, Kauai, and the Big Island, and self-service storage facilities on Maui and Kauai.
In 2009, HC&S produced approximately 126,800 tons of raw sugar. As a by-product of sugar production, HC&S also produced approximately 41,700 tons of molasses in 2009. In 2009, approximately 34,300 tons of sugar was processed by HC&S into specialty food-grade sugars under the HC&S's Maui Brand trademark or repackaged by distributors under their own labels.
During 2009, Kauai Coffee had approximately 3,000 acres of coffee trees under cultivation. The 2009, harvest yielded approximately 2.6 million pounds of green coffee. HC&S and McBryde Sugar Company, Limited (McBryde), a subsidiary of A&B and the parent company of Kauai Coffee, produce electricity for internal use and for sale to the local electric utility companies. HC&S's power is produced by burning bagasse (the residual fiber of the sugar cane plant), by hydroelectric power generation and, when necessary, by burning fossil fuels. McBryde produces power solely by hydroelectric generation.
The Company competes with Horizon Lines, Inc., Pasha Hawaii Transport Lines, LLC, Maersk, COSCO, Evergreen, Hanjin, APL, China Shipping, Hyundai, NYK Line, C.H. Robinson Worldwide and the Hub Group
A&B-Hawaii, Inc.; A&B Development Company; A&B Properties, Inc.; California and Hawaiian Sugar Company; East Maui Irrigation Company, Ltd.; Kahului Trucking & Storage, Inc.; Kauai Commercial Company, Inc.; Kukui'ula Development Company, Inc.; McBryde Sugar Company, Ltd.; South Shore Community Services, Inc.; South Shore Resources, Inc.; WDCI, Inc.; Matson Navigation Company, Inc.; Matson Intermodal System, Inc.; Matson Leasing Company, Inc.; Matson Services Company, Inc.; Matson Terminals, Inc.
Statistics:
Public Company
Incorporated: 1900 as Alexander & Baldwin, Ltd.
Employees: 3,709
Sales: $979.5 million
Stock Exchanges: NASDAQ
SICs: 4423 Deep Sea Domestic Transportation of Freight; 2061 Raw Cane Sugar; 7359 Equipment Rental & Leasing Nec; 6552 Subdividers & Developers Nec
OVERALL
Beta: 1.46
Market Cap (Mil.): $2,197.29
Shares Outstanding (Mil.): 41.56
Annual Dividend: 1.26
Yield (%): 2.38
FINANCIALS
ALEX.K Industry Sector
P/E (TTM): 37.07 12.00 17.41
EPS (TTM): 552.09 -- --
ROI: 2.80 5.31 3.06
ROE: 5.32 10.00 5.59
Name Age Since Current Position
Dods, Walter 69 2010 Independent Non-Executive Chairman of the Board
Kuriyama, Stanley 57 2010 President, Chief Executive Officer, Director
Benjamin, Christopher 47 2006 Chief Financial Officer, Senior Vice President, Treasurer
Cox, Matthew 49 2008 President of Matson Navigation Company
Buelsing, Norbert 59 2008 President of A & B Properties, Inc.
Ching, Meredith 54 2007 Senior Vice President - Government & Community Relations
Chun, Nelson 58 2005 Senior Vice President, Chief Legal Officer
Ito, Paul 40 2007 Vice President, Controller
Paik, Son-Jai 38 2007 Vice President - Human Resources
Nakamura, Alyson 45 1999 Secretary
Doane, W. Allen 63 2010 Independent Director
Chun, Michael 67 1990 Independent Director
King, Charles 65 1989 Independent Director
Shaw, Maryanna 71 1980 Independent Director
Watanabe, Jeffrey 68 2003 Independent Director
Lau, Constance 59 2004 Independent Director
Pasquale, Douglas 56 2005 Independent Director
Baird, W. Blake 50 2006 Independent Director
Address:
822 Bishop St.
P.O. Box 3440
Honolulu, Hawaii 96801-3440
U.S.A.
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