Matson, Inc. (NYSE:MATX) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 04:30 pm ET
Good afternoon, ladies and gentlemen, and welcome to the Second Quarter 2020 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call may be recorded.
I would now like to turn the conference over to your host today, Mr. Lee Fishman, Director of Investor Relations. Sir, the floor is yours.
Thank you, Joanna. Joining me on the call today are Matt Cox, Chairman and Chief Executive Officer; and Joel Wine, Senior Vice President and Chief Financial Officer. Slides from this presentation are available for download at our website, www.matson.com under the Investors tab.
Before we begin, I would like to remind you that during the course of this call, we will make forward-looking statements within the meaning of the federal securities laws regarding expectations, predictions, projections or future events. We believe that our expectations and assumptions are reasonable. We caution you to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements in the press release, the presentation slides, and this conference call. These risk factors are described in our press release and presentation and are more fully detailed under the caption Risk Factors on Pages 24 to 34 of our Form 10-Q filed on May 5th, 2020, and in our subsequent filings with the SEC.
Please also note that the date of this conference call is August 5th, 2020, and any forward-looking statements that we make today are based on assumptions as of this date. We undertake no obligation to update these forward-looking statements.
I will now turn the call over to Matt.
Matthew J. Cox
Thanks, Lee, and thanks for those on the call today. I'd like to start with a quick recap of our second quarter results before I walk through our response to the COVID-19 environment and our current priorities.
So please turn to slide 3. Matson's businesses performed well despite the challenges from the COVID-19 pandemic and related economic effects. Ocean transportation had a very good quarter and was led primarily by strength in our China service, including seven voyages in our supplemental service we call CLX+ as well as year-over-year volume improvement in our regular CLX service.
In our Hawaii service, we had better than expected volume as we carried a portion of Pasha's volume due to a dry docking of one of its vessels. And Alaska volume was better than expected as the local economy gradually reopened in the latter half of May and into June, which led to improved freight demand.
In logistics, some of the business lines continue to be challenged by the COVID-19 pandemic. The decline in operating income was led by lower contributions from transportation brokerage and freight forwarding, both of which are lower retail-related volumes because of the COVID-19 environment.
Please turn to slide 4. On the first quarterly earnings call, I discussed how Matson was responding to managing the business through this pandemic and period of economic uncertainty. I want to spend a few minutes revisiting those actions and where we