Chiquita Brands International, Inc has announced updated information on banana prices and volume for the first two months of the 2003 fourth quarter.
On a US dollar basis, average banana prices in the company's core European markets (EU-15 countries, Norway and Switzerland) rose 20 per cent in the first two months of the fourth quarter of 2003, compared to the same period a year ago, due to a stronger euro. On a local currency basis, prices in those same markets rose two per cent from the low year-ago level. The volume of bananas the company sold in its core European markets was unchanged in the first two months of the fourth quarter, compared to the same period a year ago.
In North America, banana prices fell by one per cent in the first two months of the 2003 fourth quarter compared to the year-ago period, while volume rose eight per cent as the amount of business on contract rose from a year ago.
On a US dollar basis, banana prices in Eastern and Central Europe and the Mediterranean were unchanged. Local banana prices in the region fell 15 per cent from a year ago, as volume rose seven per cent.
On a US dollar basis, banana prices in Asia rose 15 per cent in the first two months of the 2003 fourth quarter, compared to a year ago. Local banana prices in Asia also rose seven per cent. The volume of bananas the company sold in Asia in the first two months of the fourth quarter rose 15 per cent from the same period a year ago as it shipped more bananas to Japan and the Middle East.
The change in price on a US dollar basis for the European core markets does not include the company's cost of hedging, or the effects of increased local costs in Europe due to a stronger euro, both of which affect the company's earnings.
In its quarterly earnings releases, Chiquita publishes per-cent changes in regional price and volume compared to the year-earlier period. The company announced on its second-quarter earnings conference call, July 31, 2003, that it would update changes in banana prices and volume after the second month of each quarter to complement figures provided in the quarterly releases and help investors more effectively track the factors that influence Chiquita's financial results.
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