Chiquita Banana Volumes, Prices Up

NEW YORK - Dec 15/05 - SNS -- Chiquita Brands International, Inc. said the average price it earned for bananas sold during the first two months of the fourth quarter of its 2005 fiscal year were up, as was the volume of bananas sold.

In the European Union, Norway, Iceland and Switzerland, Chiquita's average banana prices rose 21% on a U.S. dollar basis (27% on a local currency basis) in the first two months of the 2005 fourth quarter, compared to the same period a year ago.

The company attributed the higher average European prices to competition for import licenses, the impact of higher delivered costs for fuel and shipping, and expanded sales of premium-label volumes. The volume of bananas the company sold in its core European markets fell 3% in the first two months of the quarter, compared to the same period a year ago, as the company sold less second-label fruit.

Average banana prices in the United States and Canada rose 3% in the first two months of the quarter versus the same period last year.

The company attributed the pricing increase primarily to the impact of a surcharge implemented in September to partially offset rising costs for fuel-related products and transportation. Banana volume in the period fell 6% due primarily to the disruptive impact of recent storms, including Hurricanes Katrina, Rita and Stan, on logistics and sourcing.

In the company's Fresh Express retail value-added salads business, volume rose 6%, as new product introductions, such as reconfigured and relaunched complete salad kits, drove year-over-year growth. Net revenue per case also rose 6% compared to the year-ago period. Higher cost of sales and market development spending offset essentially all of the positive impact of the volume and revenue increase.

The volume of bananas the company sold in this region in the first two months of the fourth quarter rose 42% from the same period a year ago, due in large part to increased sales in Iran and Japan. Banana prices in Asia and the Middle East fell 10% on a U.S. dollar basis (7% on a local currency basis) in the first two months of the 2005 fourth quarter, compared to a year ago, due primarily to lower pricing in Japan.