US container carrier Matson saw its net income in the fourth quarter of 2017 surge to USD 166.9 million from USD 20 million reported in the same period a year earlier.
For the full year ended December 31, 2017, the company said that its net income increased to USD 232 million, compared to USD 81.4 million reported in the previous year.
While consolidated revenue for the fourth quarter decreased to USD 516.1 million from USD 519.3 million recorded in the fourth quarter of 2016, full year revenue was up at USD 2.04 billion compared to USD 1.94 billion seen a year earlier.
The net income in the quarter and full year 2017 benefitted by USD 155 million from a one-time, non-cash adjustment arising from the enactment of the Tax Cuts and Jobs Act.
“Matson’s core businesses performed well during the fourth quarter supported in particular by continued strong demand in our China service and higher lift volumes at SSAT. Overall, 2017 was a solid year for Matson,” Matt Cox, Matson’s Chairman and Chief Executive Officer, said.
Operationally during the past year, the company continued to advance its new Hawaii vessels and Sand Island crane program.
“For 2018, we expect to face continued competitive pressure in Guam and modestly lower volume in China coming off an exceptionally strong year, offset by modest improvements in our other core businesses. As a result, we expect Matson’s 2018 operating income to approximate the level achieved in 2017,” Cox informed.
In the first quarter 2018, Ocean Transportation operating income will be moderately higher than the level achieved in the first quarter 2017 primarily due to the timing of fuel surcharge collections.