Dole shares slip on fruit sales earning announcement

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Dole shares slip on fruit sales earning announcement

Dole Food Company (NYSE: DOLE) shares dropped by 13.6% yesterday (Jan. 2) to US$9.91 after its executive vice president Michael Carter highlighted difficult conditions in a 2013 forecast. banana_59586463 small

In a release, Carter said aggressive contract negotiations continued in North America even though costs were higher, with "some importers seeking to buy market share".

"The fresh fruit business of the new Dole is continuing to experience declining earnings in a continued difficult economic environment," he said.

"While right-sizing initiatives for the new Dole will partially offset these impacts, our current expectation is that pro forma 2013 Adjusted EBITDA for the new Dole, including 2013 planned cost savings in the $20 million range, will be in the $150 - $170 million range."

He added income from continuing operations after income taxes would be in the US$45-60 million range, assuming no major changes.

Chairman David H. Murdock said he was very optimistic for the company's long-term future, even though the current environment in the banana market remained challenging.

"I am excited to be returning to the position of CEO, working with Michael Carter and Dole’s new management team, all of whom are committed to our right-sizing efforts and delivering synergies within Dole’s remaining fresh fruit and vegetables businesses."

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