Chiquita Brands International saw second quarter 2004 net income of $30 million (£16.3m), or $0.73 (40p) per diluted share, including an after-tax loss of $4m (£2.2m) on the sale of its Colombian banana production division.
The company reported net income of $57m (£30.9m), or $1.41 (77p) per diluted share, in the same period a year ago, including a $21m (£11.4m) gain on the sale of the Armuelles, Panama, division and $8m (£4.4m) from discontinued operations, primarily representing a gain on the sale of the company's vegetable canning operations.
"We achieved solid operating performance in the second quarter considering the impact of asset sales, which represented a difference of $33m (£18m) in net income year-over-year," said Fernando Aguirre, chairman and chief executive officer. "During the quarter, we strengthened the depth of our management team. New leaders of our Asian business and North American category development and marketing groups bring exceptional consumer products experience to Chiquita.
"Our farm productivity is on track to improve six per cent year-on-year as we continue to focus on driving cost savings to the bottom line," he continued.
"In addition, we successfully transitioned into the expanded European Union and are now building brand equity through new marketing investments in several of the new Central and Eastern European member states. We believe these programs will yield long-term benefits as we prepare for a tariff-only system by 2006."
Net sales were $848m (£460.8m), up from $829m (£450.5m) in the second quarter 2003. The increase resulted from favourable European currency exchange rates and higher other fresh produce sales, partially offset by lower local banana pricing and volume.
The 2004 quarter included $2 million of restructuring charges at Atlanta AG and severance, and a $9m (£4.9m) pre-tax loss from the sale of the Colombian banana division. The post-tax loss from the Colombia sale was $4m (£2.2m).
In the company's banana segment, overall net sales rose to $459m (£249.5m), up $5m (£2.7m), and operating income was $37m (£20.1m), compared to $61m (£33.2m). Good banana segment operating results were partially offset by $5m (£2.7m) in lower local European pricing.
Chiquita’s other fresh produce segment saw net sales rise to $372m (£202m), compared to $358m (£194m) a year ago, due to sales in the new Chiquita Fresh Cut Fruit business and increased pineapple volume.
