Dole Food Company has announced that adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell 30 per cent through the first quarter (Q1) of the year, down to US$85m (€76m) from the US$122m (€94.5m) recorded in the same period last year.
The result was impacted by lower earnings in the group's worldwide banana operations with lower local pricing in Europe and Asia, as well as higher fruit costs in North America and Europe, while earnings also fell in Dole's Chilean deciduous fruit business.
Net revenues through the quarter climbed to US$1.6bn (€1.24bn) from US$1.59bn (€1.23bn) in 2009, the US-based multinational reported, with packaged food sales increasing due to higher volumes sold worldwide, and fresh fruit sales rising as a result of higher sales in European ripening and distribution operations and higher North American banana sales.
'We are very pleased with the performance of our fresh vegetables and packaged food segments which met or exceeded our plan for the quarter,' said Dole president and CEO David DeLorenzo. 'Our fresh fruit operations, however, were negatively impacted by poor market conditions in Europe and Asia during the quarter related to severe weather conditions in both markets, as well as the continuing weak economic conditions in the European Union.
'Overall the operating earnings met our expectations, considering the write-off of almost US$5m (€3.9m) in deferred debt issuance costs in the quarter,' Mr DeLorenzo added.
Additionally, Dole noted that it had been awarded US$30.7m (€23.8m) as part of a binding arbitration case involving faulty manufactured refrigerated containers that it purchased, although the results are not included in the group's first quarter results.
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