Fresh produce group Chiquita Brands International has reported a third-quarter net loss of US$28m, or $0.66 per share. Third-quarter net sales rose by 3% to $1.1bn.
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The third-quarter figures included a charge of $4m related to the previously announced downsizing of its operations in Chile. Chiquita reported a net loss of $96m in the third quarter of last year, which included a charge of $43m.
“As we had anticipated, our third quarter, excluding charges, showed a modest improvement in year-over-year operating results,” said Fernando Aguirre, chairman and chief executive officer. “While we continue to face rising industry costs and other market challenges, we expect to deliver further year-over-year progress in operating results in the fourth quarter and in the year ahead.”
Aguirre said the banana pricing environment in Europe had stabilised earlier in the year and improved in the third quarter. In addition, the company’s value-added salads business had shown a “significant year-on-year recovery” in the third quarter, which Aguirre said the company expected to continue into the fourth quarter and in 2008.
Late last month, Chiquita announced a major revamp of its business in a bid to cut costs and boost efficiency. The company said it planned to cut 160 management jobs and reduce costs by up to $80m a year.
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By GlobalDataAguirre said that in addition to achieving new and sustainable cost reductions of approximately $60-80m beginning in 2008, the changes would result in fewer layers of management, faster decisions and better accountability.
He added: “Also, we will drive greater integration and efficiency across business units and geographies, resulting in one face to customers, one global supply chain from seed to shelf, and one global innovation programme with targeted priorities and better execution. Taken together, I am confident these actions will strengthen our long-term market position and enhance our ability to achieve sustainable, profitable growth.”
