FEBRUARY 7, 2012 — Matson, Inc. (NYSE: MATX), has again been showing signs that it is paying serious attention to fleet renewal.
Last November, the company said that it has a strategic re-fleeting plan that calls for the building of two new Jones Act containerships in the next 3 – 5 years for approximately $200 million each to replace/retire existing older vessels (see earlier story).
Today the company reported fourth quarter results that saw net income reach $15.6 million and net income for the full year 2012 reach $45.9 million, compared with $34.2 million in 2011. Consolidated revenue for the full year 2012 was $1,560.0 million, compared with $1,462.6 million in 2011.
"Looking into 2013, we expect mixed results in our ocean transportation trade lanes as compared to 2012, but on balance we expect to improve operating margins," said Matt Cox, Matson's President and Chief Executive Officer. "Likewise, we expect margins in our logistics group to improve. These gains, and the cash flow generated, will allow us to support a strong dividend, maintain an investment grade credit standing and provide capacity for future vessel replacement and growth investments."
The company expects capital expenditures for 2013 to be $40-$50 million, excluding vessel replacement capital expenditures. And it notes that "it may elect to make deposits to the Capital Construction Fund if it is able to finalize its vessel replacement plan. These deposits could be significant and will have the effect of reducing the company's current cash tax liabilities."