Chiquita Brands International, the Cincinnati-based marketer and distributor of fresh produce, has posted a sharp drop in first-quarter net income from US$87m, or $1.94 per diluted share, to $20m, or $0.46 per diluted share.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more


The company said the 2006 first-quarter results included $50m in higher costs associated with fuel and transportation, the continuing impact of weather-related events that occurred in late-2005 and higher banana import tariffs in Europe.


Net sales rose by 24% to $1.2bn. Chiquita said the increase stemmed primarily from the acquisition of Fresh Express, and was partly offset by lower banana volume in Europe and North America and unfavorable European exchange rates. Operating income fell from $94m to $39m.


“We faced a variety of challenges in the first quarter, including rising industry costs for fuel and transportation expenses as well as the transition to the new banana import regime in the European Union, where tariffs more than doubled this year,” said Fernando Aguirre, chairman and chief executive officer. “In addition, we incurred significantly higher sourcing costs due to the continuing effects of tropical storms in late 2005 and our decision to secure replacement fruit to meet customer needs.”


Aguirre added that the company expected banana supply shortfalls to prevail through the second quarter, but supply should return to more normal levels by the middle of the year. The company also anticipates higher industry costs, driven by higher fuel-related expenses, which it is attempting to mitigate through indexed fuel surcharge policies.

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.

However, Aguirre was enthusiastic about the impact of the company’s acquisition of Fresh Express. “We are very excited about our sustained progress at Fresh Express,” he said. “We continue to expect this strategic acquisition to generate significant revenue and earnings growth and to be accretive to overall company earnings for the full-year 2006.”