Los Angeles Business Journal

Mixed Quarter for Dole

Thursday, May 2, 2013

A smaller Dole Food Co. produced as much revenue as expected by analysts in its fiscal first quarter, but its profits failed to meet projections due to litigation expenses.

The Westlake Village produce company reported on Thursday income from continuing operations of $11 million (12 cents a share) in the first quarter ended March 23, compared with $22 million (24 cents) in the same period a year earlier. Revenue fell 3 percent to $1.05 billion.

Analyst had forecasted a profit of 14 cents a share and revenue of $1.05 billion, according to Thomson Financial Network.

The company’s first quarter earnings reflected a $34 million charge to pay an EU General Court antitrust decision levied against it in March.

The company also completed the $1.7 billion sale of its worldwide packaged foods and Asia fresh produce businesses to ITOCHU Corp. on April 1. The combined revenue of Dole’s discontinued operations represented about 38 percent of its revenue last year, according to the company.

Chief Operating Officer C. Michael Carter said the company’s adjusted operating income was improved from a year ago.

“First quarter Adjusted EBITDA from both of our remaining lines of business exceeded last year. Earnings grew in all of our core fresh fruit product lines. Fresh vegetables performance improved largely due to a turn-around in the fresh-packed product line,” he said.

Dole gained 25 cents, or 2.4 percent, to close at $10.71 on the New York Stock Exchange.

A smaller Dole Food Co. produced as much revenue as expected by analysts in its fiscal first quarter, but its profits failed to meet projections due to litigation expenses.

The Westlake Village produce company reported on Thursday income from continuing operations of $11 million (12 cents a share) in the first quarter ended March 23, compared with $22 million (24 cents) in the same period a year earlier. Revenue fell 3 percent to $1.05 billion.

Analyst had forecasted a profit of 14 cents a share and revenue of $1.05 billion, according to Thomson Financial Network.

The company’s first quarter earnings reflected a $34 million charge to pay an EU General Court antitrust decision levied against it in March.

The company also completed the $1.7 billion sale of its worldwide packaged foods and Asia fresh produce businesses to ITOCHU Corp. on April 1. The combined revenue of Dole’s discontinued operations represented about 38 percent of its revenue last year, according to the company.

Chief Operating Officer C. Michael Carter said the company’s adjusted operating income was improved from a year ago.

“First quarter Adjusted EBITDA from both of our remaining lines of business exceeded last year. Earnings grew in all of our core fresh fruit product lines. Fresh vegetables performance improved largely due to a turn-around in the fresh-packed product line,” he said.

Dole gained 25 cents, or 2.4 percent, to close at $10.71 on the New York Stock Exchange.