Posted on: Saturday, August 4, 2007
Maui Land & Pine’s losses rise
Advertiser Staff
Kahului-based Maui Land & Pineapple Inc. yesterday reported larger losses on higher revenues during the second quarter ended June 30.
REVENUE
Revenue: $38.7 million versus $33.6 million year earlier
Net loss: $3.5 million versus $2.6 million
Loss per share: 44 cents versus 36 cents
Fiscal 2007 first-half revenue: $99.7 million versus $92.5 million
Fiscal 2007 first-half net income: $12.2 million versus $11.2 million
Fiscal 2007 first-half earnings per share: $1.59 versus $1.54
REASONS
Increased revenues and operating profit from the community development business were offset by increased operating losses from the agriculture and resort businesses.
Resort segment revenues were lower for the first six months of 2007 compared with the same period in 2006. The closure of the Village Course at the end of February 2007 and a reduction in retail space were largely responsible for the lower results.
Revenues for the agriculture business fell in the second quarter of 2007 when compared with the second quarter of 2006 because of a decrease in processed-fruit sales.
WHAT THEY ARE SAYING
"Maui Pineapple Company's exit from the canned pineapple business dominated results for the second quarter. In addition to severance and pension charges, restructuring costs included adjustments to standard costing and purchase supply agreements."
David Cole
Chairman, president and CEO
WHAT'S NEXT
April 2007, the company announced that it would cease substantially all canning and processing of solid-pack pineapple products, although it will continue to produce a small volume through the end of 2007.
The company will continue to process pineapple juice and will extend its fresh-fruit line to include products for institutional accounts.
Maui Land & Pine anticipates additional charges related to the reduction in canning operations to be taken through the remainder of the year.
