Fresh Del Monte Produce has reported that its first quarter profits more than tripled thanks to improved operations and gains from the sales of certain business units.
The firm posted net income of $51.6 million (£25.9m), or 89 cents per share for the first quarter of 2007, sending shares rocketing in Tuesday trading from $4.52 to $24.89, a 22.2 per cent leap. In the year-earlier period, Fresh Del Monte posted income of just $16.5m, or 28 cents per share.
Trading analysts had expected the company to produce earnings per share of 40 cents, according to data compiled by Thomson Financial.
“The first quarter of this year was the best we have had in two years,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s chairman and ceo.
Higher profits came from trimming costs, focusing resources and making the business stronger, Ghazaleh explained in a statement. The company also saw gains reflected from the $2.9m sale of its Hawaiian pineapple operation.
“I am gratified that we are now seeing the positive results from the difficult decisions we have made over this challenging period,” he added.
The global fruit and vegetable supplier earned $836m in sales, marginally down from the $840m seen in the same quarter the previous year.
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