Chiquita Brands profit misses on lower banana prices
Tue May 8, 2012 5:35pm EDT
(Reuters) - Fruit and vegetable distributor Chiquita Brands International Inc's (CQB.N) first-quarter adjusted profit fell short of analysts' expectations as lower banana selling prices hurt sales and higher fuel costs squeezed margins.
The Cincinnati-based company said banana sales fell 3 percent to $520 million during the period due to lower prices in North America and lower European exchange rates. It expects the impact to follow through to the rest of the year.
For the January-March period, the company incurred a loss of $11 million, or 24 cents per share, compared with earnings of $24 million, or 52 cents per share a year earlier.
The loss includes charges related to the previously announced shipping reconfigurations in Europe, the relocation of the company's headquarters, and other exit activities.
Total sales fell 4 percent to $793 million.
Excluding items the company posted earnings of 4 cents. Analysts on average had expected 32 cents, according to Thomson Reuters I/B/E/S.
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