U.S.: Dole revenue falls 25% in H1 - FreshFruitPortal.com

U.S.: Dole revenue falls 25% in H1

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U.S.: Dole revenue falls 25% in H1

U.S. business Dole Food Company has recorded a 25.3% year-on-year fall in adjusted EBITDA to US$203 million for the first half of 2012 due to lower banana prices.

Dole's president and CEO David A. DeLorenzo said the company was pleased that the second quarter adjusted EBITDA - which was 18% lower at US$132 million - was in line with expectations.

"As anticipated, banana earnings were weaker primarily due to lower pricing in North America," he said in a release.

"The positive steps we have taken to restructure our European operations have partially offset the impacts of weaker currencies in Europe."

DeLorenzo noted adjusted EBITDA was actually higher in the second quarter for fresh vegetables, with incremental earnings from last year’s berry acquisition and continuing improvement in our packaged salads business.

However, packaged food earnings were lower than last year due to the launch of the national advertising campaign to support its Fruit Smoothie Shakers and Frozen Fruit Single-serve cups.

Strategic review

Dole is currently in discussions with third parties for prospective transactions with "a number of the companies business".

"We are continuing to look at a wide variety of potential alternatives as part of the strategic review of our businesses," added DeLorenzo.

"As part of this review, we are exploring transactions that may include a full or partial separation of one or more of our businesses through a spin-off or other capital markets transaction, as well as joint venture and sale transactions, all of which are aimed at enhancing shareholder value.

"This review continues to be a company priority in our efforts to enhance shareholder value."

For the worldwide packaged foods business, the company is exploring a possible sale transaction as well as a possible spin-off of this business to current Dole stockholders.

The company is also exploring a possible separation of the worldwide packaged foods business in combination with Dole operations in Asia, into a stand-alone, primarily Asia-based company either through a possible joint venture with third parties interested in partnering with Dole or through an initial public offering in Asia.


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