Dole Food Company president and chief operating officer Michael Carter has revealed that the fresh produce giant is to suspend its US$200m share repurchase programme, instead focusing on the purchase of three new vessels.
Carter told US media that weaknesses in the group's strawberry business had impacted on the repurchase programme, with the company opting to use US$165m of funds to buy three new specialty refrigerated container ships for its US west coast operations.
According to Dole, the new ships – which will be delivered between late 2015 and early 2016 – will be more fuel efficient and will be built to certain specifications.
The company's strawberry business has been heavily impacted by weather conditions, with Dole anticipating full-year losses US$23m below expectations.
