US: Fresh Del Monte profit hit by charges

By: just-food.com | 25 February 2009

US fruit and veg group Fresh Del Monte Produce posted a 33% drop in fourth quarter profit hurt by one-time charges and lower sales in its prepared food business segment.

For the quarter ended 26 December net income fell to US$22.9m from $34.4m a year earlier.

The company's charges relate to asset impairment and clean up charges as a result of extensive flooding in the company's banana operations in Costa Rica.

"Despite the difficult environment, we remained focused on the fundamentals that are critical to our success; prudently managing costs while investing in profitable core products and emerging markets that we believe will generate attractive returns for our shareholders over the long-term," said Mohammad Abu-Ghazaleh, chairman and CEO.

Quarterly sales dropped 2% to $831m from $848.2m in the fourth quarter of 2007.

Net sales in the company's banana division for the quarter increased 18% to $365.8m during the quarter boosted by increased selling prices in its North America, Asia-Pacific and Middle East regions.

The company's prepared foods division saw net sales decrease 29% to $93.6m for the fourth quarter.

For the full year, the company reported net income of $157.7m on net sales of $3.5bn. That was down from net income of $179.8m on net sales of $3.4bn in the previous year.

Sectors: Fresh produce

Companies: Fresh Del Monte Produce