US: Dole books increase in FY earnings

By just-food.com | 3 February 2010

Global fresh fruit and vegetable producer Dole Food Co. has booked an increase in full-year earnings, despite a drop in revenues.

Income from continuing operations before income taxes reached US$108m for the period, compared to $99m in the previous year.

For the 12-month period ended 2 January, adjusted EBITDA increased $7m to reach $417m due to higher earnings in the packaged foods segment as a result of lower costs.

This benefit was partially offset by lower earnings in the fresh fruit segment due to weather-induced cost increases in Latin America.

Revenues decreased 11% to $6.8bn. This came as Dole lapped the sale of the company’s JP Fresh and Dole France ripening and distribution subsidiaries in the fourth quarter of 2008.

In addition, lower sales in Dole's European ripening and distribution business and in the fresh vegetables and packaged foods segments impacted revenues.

The firm’s European ripening and distribution business had lower earnings due to the sale of JP Fresh and Dole France, unfavourable foreign exchange and lower pricing.

The fresh vegetables segment was relatively flat compared to 2008 as a stronger performance in fresh-packed vegetables was offset by lower packaged salads earnings as a result of higher marketing spend.

David DeLorenzo, Dole’s president and CEO, said: “Dole had another outstanding year in 2009. We continued to build on the strong operating performance achieved in 2008, generating outstanding cash flow, which allowed us to pay down a significant amount of debt. We are optimistic as we look forward to improving earnings and further reductions in costs and debt in 2010.”

Dole also announced yesterday (2 February) amendments to its senior secured credit facilities. It expects the changes will reduce its interest costs, extend its maturities and provide for the redemption of the remaining $70m principal amount of its senior notes due 2011.

Sectors: Fresh produce

Companies: Dole Food Co.