KAHULUI, Maui — Maui Land & Pineapple Co. reported a net loss of $8.7 million for the third quarter of this year, a loss that was more than 50 times greater than the $155,000 net loss in the same quarter of 2007, The Maui News reported.

For the first nine months of this year, the company reported a net loss of $8.8 million, compared to net income of $12 million for the same period in 2007.

"Lower revenues in 2008 primarily reflect a reduction in real estate sales in 2008 of approximately $50 million when compared to the same period in 2007, cessation of the sale of solid-pack pineapple products in the second half of 2007 and a reduction in tourist traffic," the company said in its quarterly report.

The Community Development Division was the only sector to show an operating profit ($2.5 million), but on sharply lower revenues, $2.2 million for the quarter compared to $10 million in the same quarter of 2007. The company said the 2007 revenues included the sale of the land under The Ritz-Carlton, Kapalua hotel and sales of lands in Upcountry. The operating profit for the sector was from equity earnings in Kapalua Bay Holdings LLC.

"In anticipation of a deep and prolonged economic contraction, we closed a $40 million convertible debt financing last quarter and took significant steps to reduce costs and conserve cash," said David Cole, chairman, president and chief executive officer. "Our company has weathered several significant challenges during the past several months, and I believe our leadership team has been strengthened through this experience. I am confident that ML&P will emerge from this challenging period a stronger and more resilient company."

Cole is resigning his leadership positions effective Jan. 1. He will remain a ML&P director and the company's representative on the boards of Hawaii BioEnergy and the Hawaii Superferry. Robert Webber will succeed Cole as president and CEO, and Warren Haruki will be the new chairman.

Cole said the company's losses "reflect deteriorating market conditions in the Hawaiian real estate and hospitality segments, including $2.5 million in severance costs and a $4 million increase in revenues for potential defaults on closings. ... The Residences at Kapalua Bay, a project that is continuing despite the bankruptcy of its lead lender, recorded $11 million in sales."

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