Chiquita Reports Quarterly Loss

NEW YORK - May 1/07 - SNS -- Chiquita Brands International, Inc. reported a net loss of U.S. $3.4 million on sales of $1,192.4 million for the first quarter ending March 31, compared to a net profit of $19.5 million on sales of $1,153.7 million in the same three month period last year.

Discussing the results, the company said quarterly sales rose primarily due to increased banana volume in Europe and North America and favorable foreign exchange rates, partly offset by lower local banana pricing in Europe.

Operating income decreased year-over-year due to higher purchased fruit and other industry costs, lower local banana pricing in the European market, higher costs due to a record January freeze in Arizona, which affected lettuce sourcing, and the charge related to a decision to exit certain farm leases in Chile.

These were partially offset by favorable year-over-year European exchange rates and the absence of residual costs from Tropical Storm Gamma that affected the year-ago period.

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