Chiquita Brands International has reported a 6% increase in fourth-quarter net sales to US$1.2bn, and announced that it is considering refinancing options.
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The company also said it is expecting adjusted operating income for the quarter of $6m to $16m and adjusted EBITDA in the range of $28m to $38m.
For the full year, net sales increased by around 4% to $4.7bn, the company said. It is anticipating adjusted operating income of $62m to $72m for the year, and adjusted EBITDA in the range of $152m to $162m.
The banana shipper issued the trading statement ahead of the scheduled publication of its fourth-quarter and full-year results as it announced that it was considering refinancing options, including a potential amendment or refinancing of its senior secured credit facility and a convertible note offering.
Chiquita said it was considering various options including issuing convertible senior unsecured notes. In connection with the proposed refinancing, the company announced that it was seeking consent from holders of its 7.5% senior notes due in 2014 to amend the terms of the indenture under which the notes were issued.
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By GlobalDataThe company reported liquidity in excess of $70m, compared to $65m at the end of the 2006 fiscal year, as well as $169m of availability under its current revolving credit facility.
“Our estimated fourth-quarter results reflect improved year-over-year operating performance in the fourth quarter, despite a rising cost environment,” said chairman and CEO Fernando Aguirre. “In addition, our business restructuring announced in October remains on track to deliver our targeted savings in 2008.”
The company did not provide specific guidance for net sales and net income for the current year, but said it did expect improved year-on-year performance in sales and operating income in 2008, on the back of contract and market price increases and the benefits of the business restructuring, which it expects to deliver $60-80m in year-on-year cost savings in 2008.
However, Chiquita said it expects “significant” year-on-year increases in industry and other costs, which may exceed $120m in 2008, before fuel hedging gains.
