Honolulu-based Matson Inc. estimates its third quarter operating income to be $358 million to $363 million for ocean transportation and $15 million to $16 million for logistics, according to the company’s initial earnings report.
Matson’s net income and diluted earnings per share for the third quarter are projected at $277.3 million to $285.5 million and $6.39 to $6.58, respectively.
“The strong economic and business trends we saw in the second quarter continued in the third quarter resulting in solid performance in both Ocean Transportation and Logistics,” company Chairman and Chief Executive Officer Matt Cox said.
In the ocean transportation sector, the company’s China service saw “significant demand” for its expedited ocean services, including the new CCX service, as demand for e-commerce, garments and other goods stayed elevated heading into the peak season.
“Continued strong demand for the China service was the primary driver of the increase in consolidated operating income year-over-year,” he said.
Supply chain congestion continues in the Transpacific trade lane, along with inventory restocking, peak season and ongoing elevated consumption trends, Cox said, adding that Matson expects these conditions to continue at least through mid-2022.
In its domestic ocean trade lanes, Matson continued to see strong demand with higher year-over-year volumes compared to last year’s third quarter with largely pandemic-reduced volumes, Cox said.