Chiquita Reports 3rd Quarter Loss

NEW YORK - Nov 5/04 - SNS -- Chiquita Brands International, Inc. reported a net loss of $20 million, or $0.49 per diluted share, during the company's third quarter. This includes a loss of $22 million, or $0.54 per diluted share, from the premium to extinguish the company’s 10.56% Senior Notes.

The company reported net income of $10 million, or $0.25 per diluted share, in the same period a year ago, including gains of $12 million, or $0.30 per diluted share, from the sale of equity method investments, and charges of $6 million, or $0.14 per diluted share, for asset write-downs and severance.

Excluding the bond premium and gains and charges noted above, the company had a profit of $2 million, or $0.05 per diluted share, in the third quarter 2004, compared to a profit of $4 million, or $0.09 per diluted share, in the third quarter last year.

Net sales were $662 million, up from $628 million in the third quarter 2003. The increase resulted from favorable European currency exchange rates, improved banana pricing in Europe and higher banana volume in North America.

The 2004 quarter included $2 million of restructuring charges at Atlanta AG and severance. The 2003 quarter included $12 million of gains from the sale of equity method investments, primarily from the sale of two-thirds of the company’s investment in Chiquita Brands South Pacific, Ltd., an Australian fresh produce distributor; and $6 million in charges, primarily for a write-down related to the closure of poorly performing farms in Guatemala and severance at Atlanta.

In the company’s Banana segment, net sales rose to $380 million, up $32 million, and operating income was $14 million, compared to $15 million. In the company’s Other Fresh Produce segment, net sales were $267 million, essentially flat compared to the year-ago quarter.