US carrier Matson doubled its net income for the first quarter of 2018 as its Ocean Transportation and Logistics businesses exceeded expectations.
The company’s net income reached USD 14.2 million for the period, as compared to a net income of USD 7 million reported in the quarter ended March 31, 2017.
Consolidated revenue was USD 511.4 million, climbing from USD 474.4 million seen a year earlier.
“Matson is off to a good start to this year with both Ocean Transportation and Logistics exceeding expectations for the quarter,” Matt Cox, Matson’s Chairman and Chief Executive Officer, said.
The company’s year-over-year improvement in Ocean Transportation was primarily the result of lower vessel operating costs, a higher contribution from SSAT, higher volume in Matson’s Alaska service and the timing of fuel surcharge collections, partially moderated by lower volume in China and continued competitive pressure in Guam. In Logistics, the company witnessed improved performance in almost all service lines.
“For 2018, we continue to expect improvements in each of our core tradelanes with the exception of Guam and China. In Guam, we expect to face continued competitive pressure, and in China we continue to expect modestly lower volume coming off an exceptionally strong 2017,” Cox added.
As a result of the first quarter performance, Matson said it now expects its 2018 operating income to be modestly higher than the level achieved in 2017.