Del Monte Fresh Back in Black

NEW YORK - Feb 26/08 - SNS -- Fresh Del Monte Produce Inc. reported net income of U.S. $34.4 million on sales of $848.2 million during the fourth quarter ending December 28, compared to a loss of $58.8 million on sales of $737.5 million during the same three month period the previous year.

This lifted net income for the full fiscal year to $179.8 on sales of $3,365.5 million, compared to a loss of $142.2 million on sales of $3,214.3 million the previous fiscal year.

Net sales for the fourth quarter of 2007 increased 15% to $848.2 million, compared with $737.6 million in the prior year fourth quarter. The significant increase in net sales was due to strong sales performance in all of the Company's product segments driven by product price increases in the Company's gold pineapple, canned pineapple and melon product lines; higher worldwide banana selling prices; increased demand for bananas, especially in emerging markets; and favorable foreign exchange rates. Net sales for the year increased 5% to $3.4 billion, compared with $3.2 billion in 2006.

Gross profit for the fourth quarter of 2007 increased to $78.4 million, compared with gross profit of $57.4 million in the fourth quarter of 2006. The $21.0 million rise in gross profit for the quarter was driven by higher selling prices in the Company's major product lines; operational improvements in key business segments; favorable foreign exchange rates; and increased sales in the Company's Prepared Food business segment, a direct result of lower canned pineapple supply in the marketplace. These gains were partially offset by significantly higher costs associated with the growing and procurement of fruit, packaging, labor, fuel and transportation during the quarter. Gross profit for the year was $364.9 million, compared with gross profit of $189.4 million in 2006.

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