Chiquita’s net sales increased three per cent to $1.1 billion (£522 million) during the third quarter of 2007, the firm has revealed.

The multi-national banana giant also racked up a net loss of £28m, or $0.66 per diluted share, in the same period, including a charge of $4m, related to a previously announced downsizing in Chile. In the year-earlier period, the company reported a net loss of $96m, including a non-cash charge of $43m.

The company attributes the rise in quarterly sales to higher banana pricing on the European and North American markets and favourable foreign exchange rates, partially offset by lower volumes in trading markets. Quarterly operating results rose for the same reason.

“As we had anticipated, our third quarter, excluding charges, allowed a modest improvement in year-over-year operating results,” said Fernando Aguirre, Chiquita chairman and ceo. “While we continue to face rising industry costs and other market challenges, we expect to deliver further year-over-year progress in operating results in the fourth quarter and in the year ahead. The banana-pricing environment in Europe stabilised earlier in the year and improved in the third quarter, particularly in the aftermath of industry supply disruptions caused by Hurricane Dean. In addition, our value-added salads business showed significant year-on-year recovery in the third quarter, which we expect to continue in the fourth quarter and in 2008.”

Aguirre added: “Last week, we announced a business restructuring designed to improve our profitability by consolidating operations and simplifying our overhead structure to enhance efficiency, stimulate innovation and further focus on customers and consumers. In addition to new, sustainable cost reductions of approximately $60-80m beginning in 2008, the changes will result in fewer layers of management, faster decisions and better accountability.

“Also, we will drive greater integration and efficiency across business units, resulting in one face to customers, one global supply chain from seed to shelf, and one global innovation programme with targeted priorities and better execution. Taken together, I am confident these actions will strengthen our long-term market position and enhance our ability to achieve sustainable, profitable growth.”

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