US: Higher prices help Fresh Del Monte 2012 profits

CORAL GABLES, Fla.--(BUSINESS WIRE)--Feb. 19, 2013-- Fresh Del Monte Produce Inc. (NYSE:FDP) today reported financial results for the fourth quarter and year ended December 28, 2012. For the full year 2012, the Company reported earnings per diluted share of $2.46, compared with earnings per diluted share of $1.56 in 2011. Excluding asset impairment and other charges and credits, earnings per diluted share for the full year were $2.54, compared with earnings per diluted share of $1.82 for the full year of 2011. Earnings per diluted share were breakeven, or $0.00, in the fourth quarter of 2012, compared with a net loss per diluted share of $0.17 in the fourth quarter of 2011, or a net loss per diluted share of $0.15 in the fourth quarter of 2011, excluding asset impairment and other charges and credits.

"We are pleased to report a very solid performance for 2012, with a significant increase in profitability," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. "Throughout the year, we continued to build long-term shareholder value through new and innovative delivery channels, increasing our global brand awareness, with a disciplined focus on cost-reduction and efficiency improvements across our organization.”

Net sales for the year 2012 decreased $168.5 million to $3.4 billion, compared with the prior year. The decrease was primarily attributable to lower net sales in the Company's banana business segment, the result of lower sales volume in Northern Europeand in secondary markets in the Middle East. Net sales for the fourth quarter of 2012 were $776.9 million, compared with $780.8 million in the prior year's fourth quarter. The decrease was primarily due to lower net sales in the Company's banana business segment, partially offset by increased net sales in the Company's other fresh produce business segment.

Gross profit for the year 2012 was $341.7 million, compared with $319.5 million in 2011. Excluding asset impairment and other charges and credits, gross profit was $342.6 million in 2012, compared with $318.1 million in 2011. The increase in gross profit for the full year was primarily attributable to higher selling prices in the Company's other fresh produce business segment, along with increased efficiencies in the Company's global logistics network. These gains were partially offset by unfavorable foreign exchange rates. Gross profit for the fourth quarter of 2012 was $38.5 million, compared with $30.9 million in the fourth quarter of 2011. Excluding asset impairment and other charges and credits, gross profit was $38.6 million in the fourth quarter of 2012, compared with $28.6 million in the fourth quarter of 2011. The strong performance in gross profit for the fourth quarter was attributable to an increase in logistics efficiencies, which primarily impacted the Company's banana business segment, and higher sales in the Company's other fresh produce business segment, partially offset by unfavorable exchange rates.

Operating income for the year 2012 was $161.4 million, compared with $115.9 million in 2011. Excluding asset impairment and other charges and credits, operating income was $165.6 million in 2012, compared with $130.8 million in 2011. The increase in operating income for the full year was attributable to higher gross profit, a reduction in selling, general and administrative expenses, and lower asset impairment and other charges, net. Operating loss for the fourth quarter of 2012 was $2.1 million, compared with an operating loss of $20.9 million in the prior year's fourth quarter. Excluding asset impairment and other charges and credits, operating loss for the fourth quarter of 2012 was $1.9 million, compared with an operating loss of $19.7 million in the fourth quarter of 2011.

Net income for the year 2012 was $143.2 million, compared with $92.5 million in 2011. Excluding asset impairment and other charges and credits, net income was $147.4 million in 2012, compared with $107.4 million in 2011. The increase in net income reflects higher operating income and less foreign exchange losses, partially offset by higher tax expense. Net income for the fourth quarter of 2012 was breakeven, or $0.0 million, compared with a net loss of $10.1 million in the fourth quarter of 2011. Excluding asset impairment and other charges and credits, net income for the fourth quarter of 2012 was $0.2 million, compared with a net loss of $8.9 million in the fourth quarter of 2011.