A&B Reports 3rd Quarter 2009 Net Income of $8.5 Million

http://www.businesswire.com/news/home/20091029005412/en

Earnings Benefit from Ocean Transportation Gains and Cost Cutting Initiatives
HONOLULU--(Business Wire)--
Alexander & Baldwin, Inc. (NYSE:ALEX) today reported that net income for the
third quarter of 2009 was $8.5 million, or $0.21 per diluted share. Net income
in the third quarter of 2008 was $36.8 million, or $0.89 per diluted share.
Revenue in the third quarter of 2009 was $375.9 million, compared to revenue of
$456.2 million in the third quarter of 2008.

Net income for the first nine months of 2009 was $24.1 million, or $0.59 per
diluted share. Net income in the first nine months of 2008 was $108.5 million,
or $2.61 per diluted share. Revenue for the first nine months of 2009 was
$1,049.8 million, compared to revenue of $1,494.5 million in the same period of
2008.

COMMENTS ON QUARTER

"Market conditions continue to affect the Company`s core transportation and real
estate businesses. Results for the third quarter were mixed, with Ocean
Transportation and Real Estate Leasing performing relatively well in their
respective markets while Real Estate Sales and Logistics Services results were
modest," said W. Allen Doane, chairman and chief executive officer of A&B. "The
loss in Agribusiness, while anticipated, was painful."

"In response to the difficult economic environment, we have taken necessary
measures across all of the business units to better align our cost structure
with the realities of today`s conditions. These efforts are producing tangible
results."

"The Company remains on solid financial ground and our core operating units
continue to generate significant cash flow augmented by a multitude of cost
reduction programs and reduced capital spending. As a result, we have trimmed
outstanding debt by $33 million through the first nine months of the year,
leaving ample capacity to make what may be significant investments over the
course of the next eighteen months in distressed real estate development
opportunities and in an expansion of our transportation services."

"The Ocean Transportation segment earned $24.2 million in operating profit for
the quarter, on increased, sequential quarter-to-quarter container volume in our
Hawaii and China trade lanes. These volume gains partially offset a significant
first half 2009 decline in rates for trans-Pacific containers, where recent rate
recovery in the China trade may be helpful in the future. We also continue to
realize the financial benefits of headcount reductions and fleet optimization
initiatives made earlier in the year. This right-sizing of our fleet has
resulted in network utilization rates approaching 90 percent, and a
corresponding improvement in quarter-to-quarter operating margin."

"Matson Integrated Logistics posted operating earnings of $2.2 million, a modest
improvement over second quarter 2009 results, as weak industry demand resulted
in excess capacity that trimmed gross margins in our brokerage services. MIL
continues to realize benefits from its own series of cost reduction initiatives,
as well as improving performance in its warehouse and distribution operations."

"Our Agribusiness segment posted a significant loss of $13.8 million during the
quarter, driven by reduced power sales, low sugar yields and non-cash pension
expenses. Power sales reflect the impact of lower crude oil prices on the price
of power, while the decline in sugar yield is primarily the result of a severe
two-year drought. However, losses are expected to be considerably less in the
fourth quarter, due to the completion of the annual sugar harvest in late
October."

"Real Estate Leasing achieved operating profit of $10.2 million, the result of
high occupancy levels in our Hawaii properties and a good mix of property types
with a broadly diversified tenant base in our U.S. Mainland facilities.
Sequentially, occupancy was essentially unchanged from the second quarter.
However, operating profit declined from earlier in the year due primarily to
lower rents and tenant concessions in our U.S. Mainland portfolio."

"Real Estate Sales posted operating profit of $3.5 million in the quarter,
resulting from the sale of a Southern California income property and two small
Maui land parcels during the quarter. While sales at ongoing developments were
negligible, we are still realizing favorable pricing for commercial property
sales, and will continue to opportunistically capture embedded gains within our
commercial portfolio to generate cash for 1031 tax-deferred re-investment in
higher-return assets. This turnover is essential to maintaining a strong and
diversified portfolio that increases in value over time. Additionally, we are
making good progress in planning, permitting and construction at key development
projects, in anticipation of rising buyer demand in the future."

"Finally, our Board of Directors recently declared a quarterly dividend of
$0.315 per share, reflecting our continued confidence in the strength of our
operations and the prospects for growth in the coming years."

TRANSPORTATION-OCEAN TRANSPORTATION

Quarter Ended September 30,
(dollars in millions) 2009 2008 Change
Revenue $ 234.2 $ 272.8 -14 %
Operating profit $ 24.2 $ 31.4 -23 %
Operating profit margin 10.3 % 11.5 %
Volume (Units)
Hawaii containers 35,100 39,900 -12 %
Hawaii automobiles 21,200 21,800 -3 %
China containers 12,400 12,300 1 %
Guam containers 3,500 3,600 -3 %

For the third quarter of 2009, revenue decreased 14 percent from the year
earlier period due to lower fuel surcharges, net volume decreases and lower
rates in the China trade, offset by improved rates and cargo mix in the Hawaii
trade. Hawaii container volume continues to be affected by the economic
downturn, resulting in 12 percent lower volume in the third quarter versus the
same period in the prior year. Automobile volume decreased 3 percent from the
year earlier period, due primarily to the timing of rental fleet replacement
shipments. China volume improved modestly due to the addition of a third port of
call at Xiamen, China. Operating profit was $7.2 million, or 23 percent, lower
in the third quarter compared to 2008 due to lower volume, increases in terminal
handling costs attributable to higher contractual stevedoring rates and higher
non-cash pension expense, partially offset by lower vessel costs stemming from
fleet optimization efforts, lower general and administrative expenses and
improved net yields.

Nine Months Ended September 30,
(dollars in millions) 2009 2008 Change
Revenue $ 653.8 $ 784.2 -17 %
Operating profit $ 44.8 $ 84.7 -47 %
Operating profit margin 6.9 % 10.8 %
Volume (Units)
Hawaii containers 101,900 116,800 -13 %
Hawaii automobiles 62,800 71,000 -12 %
China containers 33,100 36,700 -10 %
Guam containers 10,500 10,600 - 1 %

For the first nine months of 2009, Ocean Transportation revenue decreased 17
percent, principally due to the same factors cited for the third quarter. Hawaii
container volume decreases were due to the same factors cited for the quarter.
Auto volume declined in total in the first nine months of the year due
principally to lower new car shipments. China container volume was lower due to
weak U.S. import demand. Operating profit for the first nine months of 2009
decreased by 47 percent, primarily due to lower volume, higher operating and
terminal handling costs, headcount reduction expenses, higher dry dock costs and
higher non-cash pension expense. Improved yields, lower fuel costs, and cost
containment initiatives, including improved equipment control and fleet
management efforts, partially offset reductions in operating profit.

TRANSPORTATION-LOGISTICS SERVICES

Quarter Ended September 30,
(dollars in millions) 2009 2008 Change
Intermodal revenue $ 48.2 $ 73.9 -35 %
Highway revenue 34.1 44.2 -23 %
Total Revenue $ 82.3 $ 118.1 -30 %
Operating profit $ 2.2 $ 5.1 -57 %
Operating profit margin 2.7 % 4.3 %

Logistics Services revenue for the third quarter of 2009 was 30 percent, or
$35.8 million, lower than the third quarter of 2008, due primarily to lower
volume in all service lines and lower rates, which were driven largely by lower
fuel surcharges and competitive pricing pressures. In the third quarter 2009,
Intermodal and Highway volume decreased by 19 and 9 percent, respectively, as
compared to the third quarter of 2008, with a significant reduction in
international intermodal volume related to lower U.S. import demand. Logistics
operating profit fell by $2.9 million compared to the third quarter of 2008, due
principally to the lower volume and lower rates cited above.

Nine Months Ended September 30,
(dollars in millions) 2009 2008 Change
Intermodal revenue $ 139.5 $ 212.2 -34 %
Highway revenue 99.3 124.0 -20 %
Total Revenue $ 238.8 $ 336.2 -29 %
Operating profit $ 5.5 $ 14.4 -62 %
Operating profit margin 2.3 % 4.3 %

For the first nine months of 2009, Logistics Services revenue and gross margins
decreased as a result of principally the same factors cited for the quarter.
Intermodal and Highway volume decreased by 23 and 10 percent, respectively, in
the first nine months of 2009 as compared to the first nine months of 2008.
Operating profit and volume decreases were due to the same factors cited for the
quarter.

REAL ESTATE-INDUSTRY

Real Estate Leasing and Real Estate Sales revenue and operating profit are
analyzed before discontinued operations are removed. This is consistent with how
the Company evaluates and makes investment, disposition and capital allocation
decisions.

REAL ESTATE-LEASING

The Company regularly makes dispositions of commercial properties from its
leasing portfolio and land under ground leases or vacant land parcels and
subsequently reinvests proceeds, on a tax-deferred basis, in new properties. As
a result, the Company typically incurs higher depreciation expenses attributable
to a step-up in the cost basis of its properties or to the replacement of
formerly non-depreciable property with depreciable property. Further, due to the
inherent timing lag between disposition and reinvestment, the Company incurs
modest loss of revenue and income in these interim periods.

Quarter Ended September 30,
(dollars in millions) 2009 2008 Change
Revenue $ 25.2 $ 26.2 -4 %
Operating profit $ 10.2 $ 11.1 -8 %
Operating profit margin 40.5 % 42.4 %
Occupancy Rates:
Mainland 83 % 95 % -12 %
Hawaii 95 % 98 % -3 %
Leasable Space (million sq. ft.):
Mainland 7.1 5.9 20 %
Hawaii 1.4 1.3 8 %

Real Estate Leasing revenue for the third quarter of 2009 was $25.2 million, a
decrease of 4 percent from the third quarter of 2008, due to lower occupancies
and rents, primarily in the mainland portfolio, the net effect of property sales
and acquisitions and the non-reinvestment of proceeds from a late 2008
disposition. Operating profit of $10.2 million was $0.9 million, or 8 percent,
lower than the third quarter of 2008 for the reasons cited above, as well as to
higher depreciation expenses.

Leasable space increased by a net 1.3 million square feet as compared to the
third quarter of 2008, due to the net effect of several acquisitions and
dispositions throughout the preceding year and to the placement in service of
several industrial properties after the third quarter of 2008 with large gross
leasable areas. Two industrial properties placed into service account for
approximately one half of the 12 percent year-over-year decline in occupancy
rates. Industrial property vacancies affect occupancy levels disproportionately
in relation to revenue, operating profit and net operating income, as this asset
class generally has significantly lower rental rates per square foot.

Nine Months Ended September 30,
(dollars in millions) 2009 2008 Change
Revenue $ 78.3 $ 82.3 -5 %
Operating profit $ 33.2 $ 37.6 -12 %
Operating profit margin 42.4 % 45.7 %
Occupancy Rates:
Mainland 86 % 96 % -10 %
Hawaii 95 % 98 % -3 %

For the first nine months of 2009, real estate leasing revenue and operating
profit decreased by 5 percent and 12 percent respectively, from the year earlier
period. Revenue was lower due to the non-recurrence of a $1.4 million business
interruption payment received in 2008, lower occupancy and rents, the timing of
property sales and acquisitions, and the non-reinvestment of proceeds from a
late 2008 disposition. Operating profit was lower due to the aforementioned
factors, and to increased depreciation and amortization expenses and increased
bad debt reserves.

REAL ESTATE-SALES

Quarter Ended September 30,
(dollars in millions) 2009 2008 Change
Improved property sales $ 8.3 $ 61.2 -86 %
Development sales 2.3 7.1 -68 %
Unimproved/other property sales 4.3 8.9 -52 %
Total revenue $ 14.9 $ 77.2 -81 %
Operating profit before joint ventures $ 3.2 $ 25.5 -87 %
Earnings from joint ventures 0.3 0.3 -- %
Total operating profit $ 3.5 $ 25.8 -86 %

Third quarter 2009 Real Estate Sales revenue was $14.9 million, or 81 percent
lower than the third quarter of 2009. In the third quarter of 2009, the Company
sold its San Jose Avenue industrial property (Los Angeles, California) and two
parcels on Maui. In the third quarter of 2008, the Company sold three commercial
properties and several residential units at its Keola La`i and Keala`ula
projects. Third quarter 2009 operating profit was $3.5 million, 86 percent lower
than in the third quarter of 2008, due principally to lower sales volume.

Nine Months Ended September 30,
(dollars in millions) 2009 2008 Change
Improved property sales $ 41.5 $ 73.3 -43 %
Development sales 5.2 211.8 -98 %
Unimproved/other property sales 14.7 10.7 37 %
Total revenue $ 61.4 $ 295.8 -79 %
Operating profit before joint ventures $ 18.2 $ 66.0 -72 %
Equity in earnings of joint ventures 0.5 10.3 -95 %
Total operating profit $ 18.7 $ 76.3 -75 %

For the first nine months of 2009, revenue was substantially lower than from the
same period in 2008, principally as a result of extensive sales at Keola La`i in
the first quarter of 2008 and the previously described commercial property
sales. Operating profit was 75 percent lower in the first nine months of 2009 as
compared to 2008, principally due to 2008 Keola La`i sales, and 2008 joint
venture income related to sales at the Company`s Kai Malu residential
development.

AGRIBUSINESS

Quarter Ended September 30,
(dollars in millions) 2009 2008 Change
Revenue $ 32.5 $ 37.5 -13 %
Operating loss $ (13.8 ) $ (6.7 ) -2 X
Operating profit margin -42.5 % -17.9 %
Tons sugar produced 53,700 50,500 6 %

Third quarter 2009 Agribusiness revenue declined $5.0 million, or 13 percent,
principally as a result of lower power prices and sales volume. Power prices
decreased by more than 50 percent compared to the prior year quarter due to
lower oil prices. Operating losses increased considerably, as compared to the
third quarter of 2008, primarily due to the lower power sales prices and to
lower sugar margins. Sugar production increased 6 percent in the third quarter
versus the same period in 2008, mostly due to harvest timing. The increase was
offset by negative sugar margins due to lower full year production estimates.
Lower production levels are the result of the unprecedented 2007-08 drought
conditions.

Nine Months Ended September 30,
(dollars in millions) 2009 2008 Change
Revenue $ 79.4 $ 96.2 -17 %
Operating loss $ (27.0 ) $ (6.8 ) -4 X
Operating profit margin -34.0 % -7.1 %
Tons sugar produced 109,200 114,800 -5 %

In the first nine months of 2009, Agribusiness revenues decreased and operating
loss increased, significantly, compared to the first nine months of 2008, for
primarily the same reasons cited for the quarter. Power revenues and attendant
operating profit were also adversely impacted in the first nine months of the
year, as compared to the prior year, by an unfavorable third quarter 2008 Public
Utilities Commission modification to the Company`s avoided-cost formula.

CORPORATE EXPENSE

Corporate expenses of $4.9 million declined by 8 percent, or $0.4 million, in
the third quarter of 2009 as compared to the third quarter of 2008. The decrease
is due principally to reductions in performance-based incentive programs and to
other overhead cost containment initiatives.

CONDENSED CASH FLOW TABLE

Year-to-Date September 30,
(dollars in millions, unaudited) 2009 2008 Change
Cash Flow from Operating Activities $ 78 $ 202 -61 %

Capital Expenditures (1)
Transportation (11 ) (29 ) -62 %
Real Estate (12 ) (51 ) -76 %
Agribusiness and other (4 ) (11 ) -64 %
Total Capital Expenditures (27 ) (91 ) -70 %

Other Investing Activities, Net 19 (49 ) NM
Cash Used in Investing Activities $ (8 ) $ (140 ) -94 %

Net Debt Proceeds/(Payments) (33 ) 17 NM
Repurchase of Capital Stock -- (50 ) NM
Dividends Paid (39 ) (38 ) 3 %
Other Financing Activities, Net (1 ) 2 NM
Cash Used in Financing Activities $ (73 ) $ (69 ) 6 %

Net Decrease in Cash $ (3 ) $ (7 ) -57 %

(1) Excludes non-cash 1031 exchange transactions and real estate development
activity.

Alexander & Baldwin, Inc. is headquartered in Honolulu, Hawaii and is engaged in
ocean transportation and logistics services through its subsidiaries, Matson
Navigation Company, Inc., Matson Integrated Logistics, Inc. and Matson Global
Distribution Services; in real estate through A&B Properties, Inc.; and in
agribusiness through Hawaiian Commercial & Sugar Company and Kauai Coffee
Company, Inc. Additional information about A&B may be found at its web site:
www.alexanderbaldwin.com.

Statements in this press release that are not historical facts are
"forward-looking statements," within the meaning of the Private Securities
Litigation Reform Act of 1995, that involve a number of risks and uncertainties
that could cause actual results to differ materially from those contemplated by
the relevant forward-looking statement. These forward-looking statements are not
guarantees of future performance. This release should be read in conjunction
with our Annual Report on Form 10-K and our other filings with the SEC through
the date of this release, which identify important factors that could affect the
forward-looking statements in this release.

ALEXANDER & BALDWIN, INC.

2009 and 2008 Third-Quarter and Nine Month Results (Condensed)

(In Millions, Except Per Share Amounts, Unaudited)

2009 2008
Three Months Ended September 30:
Revenue $ 375.9 $ 456.2
Income From Continuing Operations $ 6.1 $ 19.3
Discontinued Operations: Properties1 $ 2.4 $ 17.5
Net Income $ 8.5 $ 36.8
Basic Earnings Per Share
Continuing Operations $ 0.15 $ 0.47
Net Income $ 0.06 $ 0.42
Diluted Earnings Per Share
Continuing Operations $ 0.15 $ 0.46
Net Income $ 0.06 $ 0.43
Basic Weighted Average Shares Outstanding 41.0 41.3
Diluted Weighted Average Shares Outstanding 41.2 41.5

2009 2008
Nine Months Ended September 30:
Revenue $ 1,049.8 $ 1,494.5
Income From Continuing Operations $ 10.1 $ 83.5
Discontinued Operations: Properties1 $ 14.0 $ 25.0
Net Income $ 24.1 $ 108.5
Basic Earnings Per Share
Continuing Operations $ 0.25 $ 2.02
Net Income $ 0.34 $ 0.61
Diluted Earnings Per Share
Continuing Operations $ 0.25 $ 2.01
Net Income $ 0.34 $ 0.60
Basic Weighted Average Shares Outstanding 41.0 41.3
Diluted Weighted Average Shares Outstanding 41.0 41.6

1 "Discontinued Operations: Properties" consists of sales, or intended sales, of
certain lands and buildings that are material and have separately identifiable
earnings and cash flows.

Industry Segment Data, Net Income (Condensed)

(In Millions, Except Per Share Amounts, Unaudited)

Three Months Ended Nine Months Ended
September 30 September 30
Revenue: 2009 2008 2009 2008
Transportation
Ocean Transportation $ 234.2 $ 272.8 $ 653.8 $ 784.2
Logistics Services 82.3 118.1 238.8 336.2
Real Estate
Leasing 25.2 26.2 78.3 82.3
Sales 14.9 77.2 61.4 295.8
Less Amounts Reported In Discontinued Operations (10.2 ) (72.6 ) (53.8 ) (93.1 )
Agribusiness 32.5 37.5 79.4 96.2
Reconciling Items (3.0 ) (3.0 ) (8.1 ) (7.1 )
Total Revenue $ 375.9 $ 456.2 $ 1,049.8 $ 1,494.5

Operating Profit, Net Income:
Transportation
Ocean Transportation $ 24.2 $ 31.4 $ 44.8 $ 84.7
Logistics Services 2.2 5.1 5.5 14.4
Real Estate
Leasing 10.2 11.1 33.2 37.6
Sales 3.5 25.8 18.7 76.3
Less Amounts Reported In Discontinued Operations (4.0 ) (28.4 ) (23.7 ) (40.6 )
Agribusiness (13.8 ) (6.7 ) (27.0 ) (6.8 )
Total Operating Profit 22.3 38.3 51.5 165.6
Interest Expense (6.7 ) (5.8 ) (19.2 ) (17.5 )
General Corporate Expenses (4.9 ) (5.3 ) (15.5 ) (16.4 )
Income From Continuing Operations Before Income Taxes 10.7 27.2 16.8 131.7
Income Taxes 4.6 7.9 6.7 48.2
Income From Continuing Operations 6.1 19.3 10.1 83.5
Income from Discontinued Operations (net of income taxes) 2.4 17.5 14.0 25.0
Net Income $ 8.5 $ 36.8 $ 24.1 $ 108.5

Basic Earnings Per Share, Continuing Operations $ 0.15 $ 0.47 $ 0.25 $ 2.02
Basic Earnings Per Share, Net Income $ 0.21 $ 0.89 $ 0.59 $ 2.63

Diluted Earnings Per Share, Continuing Operations $ 0.15 $ 0.46 $ 0.25 $ 2.01
Diluted Earnings Per Share, Net Income $ 0.21 $ 0.89 $ 0.59 $ 2.61

Basic Weighted Average Shares Outstanding 41.0 41.3 41.0 41.3
Diluted Weighted Average Shares Outstanding 41.2 41.5 41.0 41.6

Consolidated Balance Sheet (Condensed)

(In Millions, Unaudited)

September 30, December 31,
2009 2008

ASSETS
Current Assets $ 281 $ 284
Investments 219 208
Real Estate Developments 85 78
Property, Net 1,605 1,590
Other Assets 141 190
Total $ 2,331 $ 2,350

LIABILITIES & EQUITY
Current Liabilities $ 259 $ 238
Long-Term Debt, Non-Current Portion 412 452
Liability for Benefit Plans 128 122
Other Long-Term Liabilities 53 52
Deferred Income Taxes 413 414
Shareholders` Equity 1,066 1,072
Total $ 2,331 $ 2,350

Alexander & Baldwin, Inc.
For media inquiries:
Meredith J. Ching, 808-525-6669
mching@abinc.com
For investor relations inquiries:
Kevin L. Halloran, 808-525-8422
khalloran@abinc.com

Copyright Business Wire 2009