Dole Food Co. has reported a smaller third-quarter loss – but its shares fell after Wall Street forecast a profit.
The produce group booked a net loss of US$13.9m, or a loss per share of $0.06 for the quarter to 6 October.
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However, the consensus forecast among Wall Street analysts was for earnings per share of $0.14, according to Janney Montgomery Scott analyst Jonathan Feeney.
In last year’s third quarter, Dole posted a loss of $47m. The smaller loss was filed despite lower sales. Dole reported lower distribution costs in North America, lower restructuring expenses and no refinancing charges.
Adjusted EBITDA, which excludes one-time charges, reached $62.4m, up from $61.1m. Earnings from Dole’s packaged food business rose.
However, profits from Dole’s fresh fruit business fell on the back of lower selling prices of bananas in North America and Asia. A trade dispute between China and the Philippines also hit earnings from fresh fruit.
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By GlobalDataSales fell 6% to $1.96bn thanks to the sale of businesses in Germany and Spain.
Dole said its deal to sell its global packaged food business and its fresh fruit unit in Asia to Japan’s Itochu Corp., announced in September, was “on track”.
Shares in Dole closed 4.52% lower at $11.61 yesterday.
