Dole income down 21% in quarter

by Staff
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WESTLAKE VILLAGE, CALIF. — Higher product costs and lower pricing for bananas contributed to a 21% decrease in income for Dole Food Co., Inc. during the second quarter.

For the quarter ended June 16, the company had income of $65.5 million, which compared with income of $83.1 million during the same quarter of the previous year. Revenue for the quarter was $1,718.5 million, down 10% from $1,915.7 million during the same quarter of the previous year. Adjusted EBITDA was $132.2 million, down 18% from $161.1 million.

“We are pleased our second-quarter adjusted EBITDA was in line with expectations,” said David A. DeLorenzo, president and chief executive officer. “As anticipated, banana earnings were weaker primarily due to lower pricing in North America. The positive steps we have taken to restructure our European operations have partially offset the impacts of weaker currencies in Europe. Fresh vegetables adjusted EBITDA was higher compared to last year, with incremental earnings from last year’s berry acquisition and continuing improvement in our packaged salads business. Earnings in our packaged foods segment were lower than last year, as expected, due to the launch of our national advertising campaign to support our new Fruit Smoothie Shakers and Frozen Fruit Single-serve cups.”

For the six months ended June 16, the company had income of $82.7 million, down 3% from $85.1 million during the same period of the previous year. Revenue for the period was $3,345.1 million, down 7% from $3,601.8 million.

The company also provided an update of its strategic review.

“The company is currently evaluating prospective transactions and options for a number of the company’s businesses and has been in discussions with numerous third parties who have expressed interest in select businesses,” the company said in a release. “For the worldwide packaged foods business, the company is exploring a possible sale transaction as well as a possible spin-off of this business to current Dole stockholders. The company is also exploring a possible separation of the worldwide packaged foods business in combination with Dole operations in Asia into a stand-alone, primarily Asia-based company either through a possible joint venture with third parties interested in partnering with Dole or through an initial public offering in Asia. All of these alternatives are intended to enhance shareholder value. The company believes it is on track to achieve one or more of these possible transactions, or any other transaction in connection with the strategic review, by the end of the year.”

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