Dole Food Company has reported on a second consecutive quarter of loss from continuing operations, as the US-based multinational was once again impacted by difficulties related to adverse weather in banana production as well as price drops in Asia.
The world's largest producer and marketer of fresh produce revealed in its fourth quarter financial statement that income from continuing operations came in at a loss of US$36m (€25.8m), down from a profit of US$15m (€10.7m) in the same quarter of 2009 and following on from the loss of US$53m (€38m) reported in the third quarter of 2010.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) also fell, from US$68m (€48.7m) during the previous year to US$21m (€15m), although revenues climbed slightly from US$1.53bn (€1.1bn) to US$1.56bn (€1.12bn).
'We are quite pleased with the performance of our fresh vegetables and packaged foods segments in 2010,' said David DeLorenzo, president and CEO of Dole. 'Our North America fresh vegetables business performed strongly, more than doubling its EBITDA, driven by higher value-added pricing and volumes, and improved plant efficiencies. Our packaged foods division achieved another record year, while introducing successful new products, such as our new 'no sugar added' Fruit Bowls in 100 per cent juice and securing price increases to offset rising input costs.
'Of course, we were not immune to the challenges that confronted the entire banana industry last year, when extremely adverse weather conditions disrupted production, increasing fruit costs in Latin America,' he added. 'In addition, the temporary closure of the Iranian market drove down banana pricing in all Asian markets, including those in which Dole sells.'
For the full year ended 1 January 2011, Dole noted it had made a loss from continuing operations of US$34m, down from a profit of US$85m in 2009, while net revenues rose from US$6.78bn to US$6.89bn.
'With a difficult fourth quarter behind us, and with market prices improving, we are focused on a strong recovery in 2011,' Mr DeLorenzo explained.
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