Produce group Chiquita Brands International booked narrower losses for the full-year but saw shares slide as the fourth-quarter result missed analyst expectations.
Chiquita said its full-year net loss fell to US$16m in 2013, down from $405m in the prior year. It generated an operating income of $50m, compared to a loss of $254m in 2012. Sales in the 12 months to the end of December were $3.05bn, down slightly from $3.07bn in 2012, as the group exited non-core unprofitable business.
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Chiquta attributed its improved profit performance to a renewed focus on core business – bananas and pineapple. According to Janney Montgomery Scott analyst Jonathan Feeney, it is a “sensible” strategy. “Chiquita’s new focus on maximizing cash flow by targeting cost inefficiencies and re-focusing capital on the core businesses (e.g., bananas, pineapples) is a sensible strategy that continues to stand a reasonable chance of success,” he wrote in an investor note.
However, Chiquita shares were down 8.12% at 16.10 (GMT) on ongoing concerns over Chiquita’s leveraged financial position and after the fourth-quarter result missed expectations. Fourth-quarter EPS loss totaled $0.56, compared to consensus forecasts of a loss of $0.31.
