Matson has scrapped its outlook for this year as the Covid-19 pandemic continues to riddle maritime and the global economy with uncertainty.
The Matt Cox-led boxship owner focused primarily on Hawaii and Alaska on Monday erased a projected $15m loss for 2020 announced late February in its 2019 earnings report.
"Given the increasing economic uncertainties regarding the Covid-19 pandemic, Matson is withdrawing its full-year 2020 outlook and expects to provide an update on its businesses during its first-quarter 2020 earnings call to be held in early May," chief executive Cox said.
The company expects its first-quarter earnings to come in at $2m to $5m and operating income to exceed expectations with ocean transportation operations at $6.5m to $9m and logistics operations at $4.5m to $5.5m.
"Matson's businesses performed well in the first quarter," Cox said.
Its CLX service returned to normal volume levels in March after an elongated post-Lunar New Year period with steady volume in Hawaii, Alaska and Guam trade lanes, but also saw challenges in its other segments due to the Covid-19, he said.
"As we enter the second quarter, our Hawaii, Guam and Alaska trade lanes face the challenge of dramatically reduced tourism," he said.
Matson also amended its $650m bank credit facility and private lender note agreements by $160m to enhance liquidity during the period of virus-driven uncertainty.
"The amendments will continue to provide for a substantial increase in available liquidity and financial flexibility until the end of 2021," chief financial officer Joel Wine said.
