Matson Reports Strong Third Quarter Earnings; Boosts 2024 Outlook

Matson, Inc. (NYSE:MATX) recently released its financial results for the third quarter ended September 30, 2024. The company saw a robust performance, exceeding expectations across various segments.

In the Ocean Transportation division, Matson reported higher year-over-year operating income, with the China service being a significant driver of consolidated operating income growth. Increased volume in Alaska further contributed to the positive results, although Hawaii and Guam experienced lower year-over-year volumes.

The Logistics segment also performed well, with operating income rising due to enhanced contributions from supply chain management and transportation brokerage services.

Looking ahead, Matson is revising its 2024 outlook upwards, primarily driven by the anticipated strength of its China service. Despite a decrease in Hawaii’s container volume in the third quarter due to lower general demand, Matson expects modest growth levels for the full year. Factors influencing this projection include low tourism growth, challenging population dynamics, and reduced discretionary income due to inflation and rising interest rates.

Matson’s China service showed positive momentum in the third quarter, marked by an increase in container volume and significantly higher freight rates year-over-year for the CLX and MAX services. The company attributes the elevated rates to a robust U.S. economy, stable consumer demand, and tight supply chain conditions.

Looking ahead to the fourth quarter, Matson anticipates freight rates for the China service to remain significantly higher than the previous year, albeit slightly lower than the peak levels observed in the third quarter. The company foresees continued strength in its CLX and MAX services in the Transpacific region.

In terms of financial updates, Matson’s equity in the income of its joint venture, SSAT, experienced a $6.9 million contribution in the third quarter, marking a year-over-year increase. The company expects this trend to continue, driven by anticipated lift volume growth.

Matson Logistics also saw operational improvements, reporting an operating income increase and expecting further growth in the fourth quarter compared to last year.

Overall, Matson reported strong financial performance and provided an optimistic outlook for the coming quarters, highlighting a positive trajectory for the company’s operations and profitability.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Matson’s 8K filing here.

Matson Company Profile

Matson, Inc, together with its subsidiaries, engages in the provision of ocean transportation and logistics services. It operates through two segments, Ocean Transportation and Logistics. The Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Japan, Alaska, and Guam, as well as to other island economies in Micronesia.