Chiquita Brands International has announced that it slipped to a net loss of US$8m (€5.7m) through the third quarter of the year, down on the US$5m (€3.6m) profit recorded through the same period of 2009.
Net sales for the three-month period slipped 8 per cent to US$730m (€522.7m), mainly sue to lower volumes in retail value-added salads and bananas, although this was partially offset by higher local pricing in core European and North American markets.
Operating income for the third quarter came to US$6m (€4.3m) compared with US$23m (€16.5m) in the year-earlier period, due to increased banana sourcing and fuel costs, lower value-added salad sales and a lower euro.
'While our third quarter results are mostly in line with our expectations, we are disappointed by recent trends in local European pricing,' said Fernando Aguirre, Chiquita chairman and chief executive officer. 'Although we continue to make progress in executing our business improvement plans in Europe and realised better local pricing year-on-year, market pricing began to soften late in the quarter due to excessive imports from EU and ACP sources. In the salads business, volumes were lower than we expected, reflecting retailers' conversion to private label and generally soft category demand.'
The group said that it is still in line to deliver a third consecutive year of profitability for 2010, with a comparable income target of US$50m-US$60m, although yearly revenue is forecast to fall by 5 per cent.
'This has been one of the most challenging operating environments in Europe,' Mr Aguirre noted. 'Notwithstanding the recent strengthening of the euro, if market conditions do not improve in the near term, our full-year comparable income is expected to be lower than previously estimated.
'Despite the weak economic environment, we believe our market leadership, operating efficiencies and breakthrough innovations such as the FreshRinse food safety and freshness technology will enable us to strengthen our business,' he added. 'We continue to focus on enhancing our business to deliver growth and diversification of earnings in 2011 and beyond.'
No comments yet