Dole Food Co. saw its earnings and sales fall in the first half due to “volatility” in the market and tightened its full-year guidance.
In the six months ended 15 June, earnings dropped to US$35.9m from $82.5m last year.
The decrease, the company said, reflects the “volatility and unpredictability” from Dole’s smaller footprint as an international commodity produce company. The US produce giant sold its worldwide packaged foods and Asian fresh produce operations to Japan’s Itochu Corp. earlier this year.
Operating profit amounted to $22.4m versus $83.2m last year. Sales climbed 3.7% to $2.24bn.
Dole reiterated its full-year earnings guidance but said it is likely to come in at the low end of the $150 to $170m range.
“This is due to the continued declining trend in fresh fruit performance principally due to banana market conditions and the full-year losses in our strawberry business, and reflects regular incentive accruals, which may vary based on Dole’s 2013 performance,” said CEO Michael Carter.
In June, Dole received an unsolicited proposal from chief executive David Murdock, who owns 40% of the business, to buy the rest of the company. Dole has designated a special committee composed of the board’s four independent directors.
