Matson, Inc. (MATX) has reported a 61.33 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $7 million, or $0.16 a share in the quarter, compared with $18.10 million, or $0.41 a share for the same period last year. Revenue during the quarter grew 4.45 percent to $474.40 million from $454.20 million in the previous year period. Total expenses were 96.54 percent of quarterly revenues, up from 92.38 percent for the same period last year. That has resulted in a contraction of 416 basis points in operating margin to 3.46 percent.
Operating income for the quarter was $16.40 million, compared with $34.60 million in the previous year period.
Matt Cox, Matson's chairman and chief executive officer, commented, "Matson's ocean transportation businesses performed largely as expected in the first quarter, declining year-over-year primarily due to the timing of fuel surcharge collections, lower volume in Hawaii and Alaska, and higher vessel operating expenses related to the deployment of an additional vessel in Hawaii. The results of Matson's logistics business came in lower than expected due to market softness in both transportation brokerage and freight forwarding services."
Operating cash flow drops significantly
Matson, Inc. has generated cash of $4 million from operating activities during the quarter, down 79.80 percent or $ 15.80 million, when compared with the last year period. The company has spent $24.20 million cash to meet investing activities during the quarter as against cash outgo of $42.60 million in the last year period.
Cash flow from financing activities was $25.80 million for the quarter, up 48.28 percent or $8.40 million, when compared with the last year period.
Cash and cash equivalents stood at $19.50 million as on Mar. 31, 2017, down 2.99 percent or $0.60 million from $20.10 million on Mar. 31, 2016.
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