CINCINNATI, July 29 — Chiquita Brands International, Inc. (NYSE: CQB) today released financial and operating results for the second quarter 2010. All figures in this press release are for continuing operations, unless otherwise noted.
For the second quarter 2010, on a comparable basis, the company reported income from continuing operations of $64 million, or $1.40 per diluted share, versus income of $95 million, or $2.08 per diluted share, in 2009. On a GAAP basis, the company reported income from continuing operations of $95 million, or $2.06 per diluted share, which includes a gain of $32 million on the sale of 51 percent of Just Fruit in a Bottle, versus income of $89 million, or $1.95 per diluted share, in 2009. Net sales were $916 million, 4 percent lower than the prior year period. The comparable basis amounts exclude certain items described below under "Items affecting comparability."
"As we expected, we regained profitability in Europe during the second quarter following the unusual weakness of the first quarter," said Fernando Aguirre, chairman and chief executive officer. "Revitalizing Europe is our most important priority and we made solid progress executing a business improvement plan that includes improving pricing, capturing significant cost improvements and increasing distribution, as we leverage the strengths of our branded business. Meanwhile, we are reaping the rewards of having a diversified portfolio as our North American salad and banana businesses in the second quarter delivered the same profit level as last year, excluding our increased consumer marketing investment."
Aguirre added, "We believe our diversification and profitable growth strategy will result in strong profitability for the full year. However, as we previously noted, a sustained, significant reduction in European exchange rates was not factored into our prior expectations. We are now adjusting our full-year comparable income estimate to $80 to $90 million, assuming these rates remain at lower levels than earlier this year. Even at the lower income estimate, 2010 will be one of our most profitable years in the last decade, despite the weak economic environment."
Source: Chiquita Brands International Inc.
