Dole Food Co has reported a loss of US$2m from continuing operations for the fourth quarter of 2011, a significant improvement on the US$31m loss posted for the same period of 2010.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached US$53m for the quarter, up from US$31m in the same three-month period of 2010, said the Westlake Village-based group in a press statement. Fourth-quarter net revenue slipped slightly from US$1.6bn to US$1.5bn.
President and CEO David DeLorenzo said the improved results reflected strong sales and a cost-cutting programme it had implemented two years ago to boost earnings.
“We are very pleased with Dole’s strong fourth-quarter earnings. Adjusted EBITDA of US$53m was a 70 per cent improvement over the previous year as a result of solid performances in each of our operating segments,” said DeLorenzo in a statement.
“The cost reduction programmes set forth in the past two years have helped improve earnings despite increasing input costs and the strength of foreign currencies.”
DeLorenzo also announced that Dole had struck an agreement to sell its distribution company in Germany without revealing details of the deal or when it would go through. “This pending sale is in line with our continuing plan to divest non-core assets, and will further our goal to reduce debt and improve operating margins,” he said.
Dole’s comparable income for the full year 2011 ending 31 December came in at US$121m, compared with the US$40m reported for 2010.
Overall sales for the year rose by 5 per cent to reach US$7.2bn, an increase largely attributed to higher banana prices worldwide and increased banana shipments to North America and Asia. Favourable currency rates in Europe and Japan also helped to boost revenues.
Revenues from packaged foods enjoyed a 7 per cent rise on the back of higher sales volumes while sales of fresh vegetables inched up by 2 per cent, the press release said. Dole’s purchase of SunnyRidge in the fourth-quarter also saw berry sales increase.
“Going forward, we continue to be encouraged by consumer acceptance of our new product introductions as well as the strength of our core products,” said DeLorenzo.
