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Chiquita Brands reports swing to 1Q loss

Chiquita Brands reports swing to 1Q loss

Chiquita Brands International Inc., one of the world's largest distributors of bananas and other fresh fruits and packaged salads, said Tuesday that its first-quarter results were sharply lower than a year ago, partly because of costs related to getting out of unprofitable farm leases in Chile.
The Cincinnati-based company reported a loss of $3.4 million (euro2.5 million), or 8 cents a share, for the quarter ended March 31 compared with profits of $19.5 million (euro14.33 million), or 46 cents per share, a year ago. Sales rose 3 percent to $1.19 billion (euro0.87 billion) from $1.15 billion (euro0.85 billion) a year ago.
Analysts surveyed by Thomson Financial expected a loss of 4 cents a share on revenue of $1.2 billion (euro0.88 billion).
Operating income was $18 million (euro13.23 million), compared with $39.3 million (euro28.89 million) a year ago, because of the $5 million (euro3.68 million) charge related to Chilean leases, higher costs and prices for purchased fruit, lower banana pricing in Europe and a January freeze in Arizona that affected lettuce availability, the company said.
Chiquita agreed in March to pay $25 million (euro18.38 million) to settle a federal investigation into a former Colombian subsidiary's ties with groups the U.S. has labeled as terrorists.
In addition to bananas, the Cincinnati-based company also markets and distributes other fresh-cut fruits and packaged salads.
Shares of Chiquita rose 65 cents, or 4.38 percent, to close at $15.48 in regular trading on the New York Stock Exchange, but added another 52 cents in after-marketing trading. The company released its results after the regular markets closed.


Updated : 2021-05-08 09:19 GMT+08:00