Fresh Del Monte Produce Inc has downgraded its earnings forecast for 2005.

The reduction is primarily due, the group said, to lower-than-expected demand for pineapples in North America in November, traditionally a high consumption period. Additionally, increased banana competition and pressure from local fruit in Japan and Korea have limited price expectations, compared with last year at this time.

Fresh Del Monte Produce now predicts to 2005 earnings per diluted share in the range of $1.90 to $2.00 versus earlier estimates for the year of $2.30 to $2.40 per diluted share. The company continues to project higher net sales for 2005.

"Having completed our November results and revised forecast, it has become apparent that the assumptions we used in the guidance we shared in the Company's third quarter earnings release on November 8, 2005 are not likely to hold," said Mohammad Abu-Ghazaleh, Fresh Del Monte's chairman and ceo. "This is disappointing following the many challenges we were able to overcome earlier in the year, including significantly higher global fuel prices and major storms that caused temporary delays in our business operations."

Abu-Ghazaleh continued, "We remain very positive as we have historically weathered many challenges in this industry."

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