Source: Maui Time, Maui News, Best of Maui, Maui Activities

The%20Business%20End
A look at the week’s economic winners and losers...

by Jacob Shafer

October 30, 2008

More bad news for Maui Land & Pineapple and CEO David Cole. Having already slashed its workforce and with debt now topping $100 million, ML&P is teetering on a dangerous precipice. Quoted in The Maui News, Cole said the situation is “keeping [him] awake at night.” Gee David—maybe you should take some of the $4.1 million in cash and stocks you were paid last year and buy a more comfortable bed.

The downturn/slowdown/slump/[insert tired buzzword here] is going to affect just about everyone on the island in some way, but it’ll hit tourism dependent businesses first—and hardest. Exhibit Z: Pacific Business News reports that Blue Hawaiian Helicopters is set to lay off 20 workers on Maui and the Big Island. The 23-year-old tour company employs 160 people on four islands; no cuts are currently planned for its Oahu and Kauai operations.

At a time when no financial institution is completely safe, folks who’ve entrusted their money to Bank of Hawaii can rest (relatively) easy. BOH posted a $47.4 million profit for the third quarter, which ended September 30. That’s a dip of less than one percent compared to the same period last year. CEO Allan Landon trumpeted the bank’s success—with the world’s smallest trumpet. Quoted in PBN, he said the company is “preparing for more challenging operating conditions as the Hawaii economy slows.” Wow, break out the champagne.

On the opposite end of the stability spectrum, Alexander & Baldwin saw third quarter profits plummet by about 25 percent. Quoted in PBN, CEO Allen Doane went on a euphemism spree, tossing out gems like “cost containment” and “revenue optimization.” I don’t have my Corporate Doublespeak Thesaurus™ handy, but I think those phrases are roughly synonymous with: “Oh shit.”

Another bleak dispatch from the Mainland: Not unlike two rats clawing at each other as they fall from a sinking ship (OK that’s a little mean, but descriptive) it looks like GM and Chrysler may merge, as reported in The Wall Street Journal. With growth stalled and sales sputtering, the two American automotive giants are staring down the tailpipe of insolvency. We thought of a couple other bad car metaphors, but we’ll spare you. MTW