Dole Food narrows down loss in third quarter of 2012

US-based producer and marketer of fruit and fresh vegetables Dole Food has reported a loss of $13.6m for the third quarter of 2012, an improvement from a loss of $47m in 2011.

The narrowing down of the loss can be attributed to a gain-related to an asset sale, as well as lower expenses.

Revenues declined by 6.2% to $1.95bn, compared with $2.08bn in 2011, primarily due to the divestiture of the company’s fresh fruit subsidiaries in Spain and Germany.

Adjusted EBIDTA for the quarter increased 2.1% to $62.4m, compared with $61.1m in 2011.

Dole Food president and CEO David A DeLorenzo said that the third quarter was challenging due to factors such as tough growing conditions and foreign exchange rates.

"We are pleased that despite these events, we were able to improve performance, compared to last year, in most of our operating groups," DeLorenzo added.

Segment wise, fresh fruit revenues decreased 12% to $1.25bn, due to lower prices of bananas sold in North America and Asia.

Fresh vegetables revenues rose 10% to $326.6m due to higher pricing of fresh-packed vegetables and packaged salads, and the berry business expansion.

Revenues from packaged foods segment increased 3% to $375.9m, primarily due to increased sales of frozen fruit and healthy snacks in North America.

For the first nine months of 2012, operating income fell 23.1% to $162.7m; revenues decreased 6.6%% to $5.30bn; and adjusted EBITDA dropped 20% to $266.7m.

Meanwhile, the company noted that it was on track to sell its worldwide packaged foods business and Asia fresh produce business to Japanese trading house Itochu for $1.68bn and expects the deal to be completed by the end of this year.