Shares in Chiquita Brands International slumped more than 24% yesterday (16 June) after the fruit group predicted a “significant loss” for the third quarter.

Chiquita said supply constraints for bananas and escalating commodity costs would dent results. While the company said it had raised the price of bananas, volumes “remain flat to down”. This means that the group has been unable to offset increased costs.

Chiquita, which also sells fresh-packed salads, raised its estimate for product supply costs for fiscal 2008 by between US$60m and $65m – bringing its full-year total to $240-265m.

“We expect these factors to result in a difficult third quarter . . . and a more normal fourth quarter,” Chiquita Chairman and Chief Executive Fernando Aguirre said.

Shares in the company sank from an open to $21.93 to close yesterday at $16.65.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.