Calavo Growers Declares Q1 Loss

NEW YORK - Mar 9/05 - SNS -- Calavo Growers, Inc. reported a net loss of U.S. $1.5 million on sales of $47.7 million for the first quarter ending January 31 of the 2005 fiscal year, compared to a net loss of $294,000 on sales of $49.0 million last year.

"While the fiscal first quarter is historically our smallest, the results in the most recent period fall well beneath our expectations," said Calavo Chairman, President and Chief Executive Officer Lee E. Cole.

"Near-record rainfall that buffeted California in December and January significantly impacted the early avocado harvest and resulted in a 20-plus% drop in segment sales year-over-year. In concert with the sharp, unanticipated rise in first-quarter fruit imports from Chile, which exerted considerable pricing pressure, these two factors held down Calavo's revenue during the period.

"With the Chilean growing season over and the delivery of California avocados to our packinghouses beginning to gain speed, I am confident that the picture of our operating performance will look quite different in the fiscal second and third quarters, and we anticipate a return to solid profitability," he said.

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