A&B Announces Organization Changes at Agribusiness
March 13 2009 - 7:00AM
Business Wire
Alexander & Baldwin, Inc. (NYSE:AXB) (�Company�) today
announced key organization changes in its agribusiness segment,
which includes Hawaiian Commercial & Sugar Company
(�HC&S�), the state�s only remaining operating sugar company.
Senior vice president Christopher J. Benjamin will assume general
manager duties at HC&S while continuing to serve as A&B�s
chief financial officer and treasurer. Former HC&S general
manager Frank E. Kiger will be leading the Company�s Maui Brand�
Sugar operations, a key area of growth for HC&S.
�HC&S is going through the most difficult period in its
history, having suffered record-setting droughts in 2007 and 2008
and an unprecedented rise in the cost of fuel and basic commodities
it uses to produce sugar and power. In addition, recent regulatory
decisions have severely impacted power sales revenue and other
parts of our business, while suppressed raw sugar prices limit our
earnings potential in the near term,� said Stanley M. Kuriyama,
A&B president.
�We are at a pivotal point, and Chris is the right person to
lead HC&S. He has a good working knowledge of the business, a
strong manufacturing and operations background, and has led the
Company�s energy initiatives for the past 18 months. Chris has the
full backing of the Company to achieve a turnaround. While the
challenges at HC&S are formidable, I am confident that Chris
and our dedicated employees at the plantation will chart the best
course of action for the company.�
In 2008, the Company�s Agribusiness segment lost nearly $13
million, attributable to losses at HC&S. In 2009, it is
expected that greater HC&S losses will be incurred due to the
impact of prior drought conditions, manifested in lower sugar
yields and production; a significant pension cost increase due to
the 2008 decline in pension asset values; and revenue reductions in
power sales.
In addition to Benjamin�s assignment, the Company announced that
Kiger will head up all of the Maui Brand� Sugar operations at
HC&S. �Having Frank available to focus 100% on Maui Brand Sugar
is strategic to HC&S� future,� continued Kuriyama. �His
contacts throughout the sugar industry, and the nation�s food
manufacturing sectors, will be a key to increasing revenues for
HC&S from these higher-value sugar products.�
As planned, G. Stephen Holaday will retire from his position as
president, Agribusiness, where he held oversight responsibility for
A&B�s Kauai Coffee Company, Kahului Trucking & Storage, and
Kauai Commercial Company. These operations will report to Kuriyama
on an interim basis. Holaday will retire effective April 15, 2009,
capping off a 26-year career at A&B, including eleven years as
HC&S general manager. Immediately prior to moving to HC&S,
Holaday had been the chief financial officer and treasurer of
A&B-Hawaii, Inc., then A&B�s real estate and agricultural
subsidiary. �We are grateful to Steve for his willingness to take
on new management roles over the years and for his many
contributions to the Company,� said Kuriyama, �and we wish him all
the best in his well-earned retirement years.�
About Alexander &
Baldwin: A&B 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 food products
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.
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