US: Dole bottom line improves - but shares fall
Dole profits rise
Dole Food Co. has reported a smaller third-quarter loss - but its shares fell after Wall Street forecast a profit.
The produce group booked a net loss of US$13.9m, or a loss per share of $0.06 for the quarter to 6 October.
However, the consensus forecast among Wall Street analysts was for earnings per share of $0.14, according to Janney Montgomery Scott analyst Jonathan Feeney.
In last year's third quarter, Dole posted a loss of $47m. The smaller loss was filed despite lower sales. Dole reported lower distribution costs in North America, lower restructuring expenses and no refinancing charges.
Adjusted EBITDA, which excludes one-time charges, reached $62.4m, up from $61.1m. Earnings from Dole's packaged food business rose.
However, profits from Dole's fresh fruit business fell on the back of lower selling prices of bananas in North America and Asia. A trade dispute between China and the Philippines also hit earnings from fresh fruit.
Sales fell 6% to $1.96bn thanks to the sale of businesses in Germany and Spain.
Dole said its deal to sell its global packaged food business and its fresh fruit unit in Asia to Japan's Itochu Corp., announced in September, was "on track".
Shares in Dole closed 4.52% lower at $11.61 yesterday.
Dole Food Company, Inc. Announces Third Quarter 2012 Results
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Nov. 15, 2012-- Dole Food Company, Inc. (NYSE: DOLE) today announced financial and operating results for the third quarter ended October 6, 2012. Dole reported third quarter of 2012 Adjusted EBITDA of $62.4 million compared to $61.1 million in the third quarter of 2011. GAAP loss from continuing operations for the third quarter of 2012 improved to $(13.6) million, or $(0.16) per share, compared to a loss of $(47) million, or $(0.54) per share, in the third quarter of 2011. Comparable Income from continuing operations for the third quarter of 2012 improved to a loss of $(5.3) million, or $(0.06) per share, compared to a loss of $(12.1) million, or $(0.14) per share, in the third quarter of 2011 (see Exhibit 3).
For the first three quarters of 2012, Adjusted EBITDA was $266.7 million compared to $333 million in the first three quarters of 2011. GAAP income from continuing operations for the first three quarters of 2012 was $69.1 million, or $0.78 per share, compared to $37.5 million, or $0.43 in the first three quarters of 2011. Comparable Income from continuing operations for the first three quarters of 2012 was $79.6 million, or $0.90 per share, compared to $123 million, or $1.40 per share, in the first three quarters of 2011 (see Exhibit 3).
“During the third quarter we announced that Dole had signed an exclusive definitive agreement with ITOCHU Corporation for the sale of Dole’s worldwide Packaged Foods and Asia Fresh businesses for $1.685 billion in cash,” said David A. DeLorenzo, Dole’s President and CEO. “We are pleased to say that this transaction is continuing on track, including the required regulatory approval process, and we do not foresee any issues in obtaining all required regulatory approvals as well as approval of our shareholders. We remain optimistic that the sale will be completed by the end of this year.”
“The third quarter was challenging on a number of fronts, including the continued quarantine issue between China and the Philippines, as well as adverse growing conditions and foreign exchange rates,” continued DeLorenzo. “We are pleased that despite these events, we were able to improve performance, compared to last year, in most of our operating groups.”
Original source: Dole Food Co.
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