US: Dole FY hit by banana prices, one-off costs
- Net income plumetts on one-off costs
- Banana prices hit margins
- Sales drop 11%
Dole hit by banana prices, one-off charges
Dole has reported a drop in its sales and profits during 2012, as lower banana prices hit the group's fresh fruit business.
The group said EBITDA from continuing operations, adjusted for the sale of its worldwide packaged foods and Asia fresh businesses, totalled US$146m compared to $196m in 2011. Comparable income from continuing operations for fiscal 2012 dropped significantly, declining to $44m from $122m.
The company said the bottom line was hit by one-off charges and transaction costs related to the sale of its packaged foods unit and fresh business in Asia.
Lower banana prices also dented margins and retarded value sales. As a consequence, sales at the group were down 11% to $4.2bn.
Dole Food Company, Inc. Announces Fourth Quarter and Full Year Results
WESTLAKE VILLAGE, California – March 12, 2013 – Dole Food Company, Inc. (DOLE:NYSE) today announced financial and operating results for the fourth quarter and fiscal year ended December 29, 2012. The consummation of the sale of Dole’s worldwide packaged foods and Asia fresh businesses on April 1, 2013 to ITOCHU Corporation, for $1.685 billion in cash, will result in a major portion of Dole’s operations being sold. The new Dole will have a smaller footprint as a commodity produce company with two lines of fresh produce businesses, which are classified as continuing operations: fresh fruit and fresh vegetables; and will no longer include the worldwide packaged foods and Asia fresh businesses as part of the Dole operations, which are classified as discontinued operations.
Dole reported results from its continuing operations (the two lines of fresh produce businesses remaining with the new Dole).
For the fourth quarter of 2012 Adjusted EBITDA from continuing operations was $(12) million compared to $11 million in the fourth quarter of 2011. Income (loss) from continuing operations for the fourth quarter of 2012 was $(88) million, or $(0.99) per share, compared to $6 million, or $0.06 per share, in the fourth quarter of 2011. Comparable income (loss) from continuing operations for the fourth quarter of 2012 was a loss of $(52) million, or $(0.59) per share, compared to $4 million, or $0.05 per share, in the fourth quarter of 2011 (see Exhibit 3).
For the full year, Adjusted EBITDA from continuing operations was $146 million compared to $196 million in 2011. Income from continuing operations for fiscal 2012 was $1 million, compared to $102 million, or $1.15 per share in 2011. Comparable income from continuing operations for fiscal 2012 was $44 million, or $0.49 per share, compared to $122 million, or $1.37 per share, in 2011 (see Exhibit 3).
“Fiscal 2012 results for both Dole’s continuing operations and its discontinued operations were lower compared to 2011 mainly due to banana market conditions and non-recurring charges for ITOCHU transaction related costs, provisions for certain previously-disclosed legal-related matters, and charges related to Typhoon Bopha in Asia,” said C. Michael Carter, Dole’s President and Chief Operating Officer. “The combined revenue of Dole’s discontinued operations being sold represented approximately 38% of Dole’s revenues, at $2.6 billion in 2012. The new Dole will continue as an international commodity produce company with a smaller footprint, retaining its entire North American fresh vegetables business as well as its fresh fruit businesses in North America, Latin America, Europe and Africa, which together generated $4.2 billion in revenues in fiscal 2012 and Adjusted EBITDA from continuing operations of $146 million.”
“As announced on February 22, 2013, we expect fiscal 2013 Adjusted EBITDA for the new Dole to be at the low end of the guidance range previously given, with the continuing declining trend in fresh fruit performance principally due to banana market conditions, assuming no major market changes,” continued Carter. “While the current environment in the banana market remains challenging, we are optimistic that this transformative sale transaction will leave the new Dole with the financial and operational flexibility to grow in this competitive environment.”
Original source: Dole Foods
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