Dole Food Co. has reported higher half-year and second-quarter profits as sales rose across the business and the company benefited from a restructing programme last year that cut costs.
The US group said yesterday (28 July) that its net income climbed 51.8% in the six months to US$85m. Dole’s operating income increased 44.6% to $201m.
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The company said its adjusted EBITDA was up 31% to $259m, while its first-half revenues rose 7.6% to $3.6bn.
In the second quarter, Dole saw its net income more than double from $33m a year ago to $83m. The company’s operating income climbed 52.5% to $122m.
Its adjusted EBITDA increased 36% to $153m. Earnings from fresh fruit were boosted by “improved” banana markets and the result of last year’s restucturing programme, which lowered shipping and distribution costs in Europe.
Revenues rose 10.1% to $1.92bn as sales from fresh fruit, packaged food and fresh vegetables.
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By GlobalData“We are extremely pleased with the continued improvement of our financial results in the second quarter,” said president and CEO David DeLorenzo said. “Each of our operating segments benefitted from improved pricing and higher volumes, and in addition our fresh fruit segment also benefitted from our restructuring programme.”
However, DeLorenzo warned Dole’s third-quarter numbers would be below those filed last year. He said the company would be lapping a container settlement it received last year, while banana prices in Europe this summer had been lowe.
Nevertheless, he added: “For the full year 2011, we continue to expect significant improvement of our earnings as compared to 2010.”
Click here for the full statement from Dole.
