Chiquita Brands International Inc has announced a swing in its fortune by reporting a profit in the third quarter, compared with a loss a year ago.
The banana giant earned $5 million (£3.06m) in the 12 weeks to September 30, compared with a loss of $7m for the corresponding 2008 period.
The company attributed the success to trimmed costs and better managed pricing strategies in dealing with seasonal shifts.
On a comparable basis, income in the third quarter was $9m, versus a loss of $15m in the 2008 period. The comparable basis amounts exclude certain items.
Net sales for the banana segment of the business were roughly flat at $472m. The benefit of higher volume in the Mediterranean and the Middle East and higher local pricing in core European markets was offset by the effects of lower volume in core European markets and lower European exchange rates.
In North America, banana prices were relatively unchanged from the year-earlier period, despite a significant decline in fuel surcharges, on slightly higher volume. Operating income was $22m for both 2009 and 2008.
Fernando Aguirre, chairman and chief executive officer, said: "Our third-quarter results reflect the terrific progress of our diversification strategy and ongoing pricing and cost discipline.
“We significantly improved over year-ago results to deliver profitability by driving costs out of the business and adhering to a pricing discipline to overcome some historically seasonal aspects of our business, as well as a tough economic environment. Our value-added salads business is showing significant and sustainable improvement and our focus on consistent execution is continuing to deliver strong results in bananas in North America and Europe."
Aguirre added: "We are encouraged by our strong momentum and are confident that, absent any major unforeseen events, we will achieve a year-over-year improvement in comparable second-half results of at least as much as we achieved in the first half. Looking ahead, we are well positioned to capitalise on profitable growth opportunities as we continue to transform into a more stable and predictable business. While we will remain diligent in managing our business for profitability, our attention is focused on growth in new geographies, distribution channels and innovative products."
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