US-based container carrier Matson delivered stronger results for the quarter ended September 30, and raised its 2018 outlook.
The company’s net income for the third quarter increased to USD 41.6 million, compared to USD 34.1 million reported in the same period a year earlier. Consolidated revenue was USD 589.4 million, up from USD 543.9 million seen in the third quarter of 2017.
For the nine months ended September 30, 2018, Matson reported a net income of USD 88.4 million, compared with USD 65.1 million in 2017, while revenue increased to USD 1.65 billion from USD 1.53 billion reported a year before.
“Our performance in the quarter was in line with our expectations with Ocean Transportation results approaching the level achieved last year and continued strong execution across all service lines in Logistics,” Matt Cox, Matson’s Chairman and Chief Executive Officer,
For the quarter within Ocean Transportation, the company saw a favorable rate environment in China and continued strong performance from SSAT, but also faced unfavorable timing in fuel surcharge collections relative to fuel cost increases and lower volume in Alaska primarily due to a weaker-than-expected seafood season.
The company’s container volume in the Hawaii service in the third quarter 2018 was 1.1 percent lower year-over-year primarily due to one less sailing. In China, the company’s container volume in the third quarter 2018 was 3.3 percent lower year-over-year largely due to a dry-dock return sailing in the year ago period.
Guam container volume was flat on a year-over-year and sequential basis, while in Alaska, the company’s container volume was 2 percent lower year-over-year, primarily due to lower southbound volume as a result of a weaker-than-expected seafood season.
“We expect our businesses to continue to perform well in the fourth quarter,” Cox said, adding that the company is therefore raising its outlook for Ocean Transportation. For the full year 2018, Matson expects Ocean Transportation operating income to be modestly higher than the level achieved in 2017.