Chiquita reports first quarter 2012 figures

Chiquita Brands has released financial and operating results for the first quarter of 2012, reporting comparable income[1] of $2 million, and a GAAP loss of $11 million on net sales of $793 million. For the same period in 2011, the company reported comparable income of $26 million and GAAP income of $24 million on net sales of $824 million. The 2012 first quarter GAAP loss includes $11 million in charges related to the previously announced shipping reconfigurations in Europe, the company's headquarters relocation, and other exit activities.

"Our first quarter results were impacted by near-term challenges in our business," said Fernando Aguirre, chairman and chief executive officer. "In Bananas, lower prices in each of our markets impacted both our revenues and comparable income for the quarter. Our North American banana business remains stable. In Europe, tight banana supply, particularly from Ecuador, helped improve local pricing sequentially during the quarter; however, this was not enough to overcome the impact of higher fuel costs and lower European exchange rates. The constrained supply availability also hampered expected sales volumes."

Aguirre added, "We are making progress on our strategic initiatives to take advantage of long-term growth opportunities, but these initiatives will take time to show in our results. In Salads, we have adapted our structure and strategy to be more successful and profitable. We realized significant quality improvements and improved efficiencies to increase the pace of product innovation on our branded salads. Our purpose is to improve shareholder value. Given the inherent complexity of managing a global business from farm to shelf, we are focusing on leveraging our most important strength, our brand. That enables us to outsource those elements of our business that are asset intensive to focus on our unique competitive advantages."

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