Third quarter comparable loss of ($0.47) per diluted share; GAAP loss of ($1.45) per diluted share
Reaffirms previously announced strategy to focus on core Banana and Salad businesses; Restructuring nearly complete
CHARLOTTE, N.C. - November 7, 2012 - Chiquita Brands (NYSE: CQB) today released financial and operating results for the third quarter of 2012. The Company reported GAAP net loss of $67 million on net sales of $714 million and comparable net loss of $22 million. For the same period in 2011, the company reported GAAP net loss of $29 million on net sales of $723 million and comparable net loss of $16 million. The 2012 third quarter GAAP net loss includes, among other items, $16 million ($12 million net of tax) in charges related to previously announced restructuring activities, $28 million in impairment and related charges for the company's investment in the Danone Chiquita Fruits SAS ("Danone JV") and $6 million ($4 million net of tax) in charges related to the company's headquarters relocation. The 2011 third quarter GAAP net loss includes, among other items, $11 million of refinancing costs.
"Chiquita's third quarter results exceeded our internal expectations. While it was a challenging quarter, we made progress in positioning the company for future growth by becoming more competitive in our core banana and salads businesses," said Edward F. Lonergan, Chiquita's newly appointed president and chief executive officer. "Although certain fundamentals suggest that supply and demand in bananas is becoming balanced and prices are rising, we face difficult pricing comparisons to 2011, particularly with respect to the impact of euro exchange rates, which, by itself, negatively impacted year over year income comparisons by $10 million for the third quarter. In salads, our retail volume reductions as compared to the year ago periods have narrowed since the beginning of the year, and we believe that our entry into private label and additional salad products will further improve our results in 2013."
Lonergan added, "Chiquita made some difficult but necessary decisions this year prior to my arrival. Focusing on the core businesses of bananas and salads is the correct strategy for the company at this time. I am committed to the strategy and believe these decisions will benefit stakeholders in the long run. We continue to believe the long term operating income margin targets we presented earlier this year are achievable in the next 24 to 36 months, and we are already seeing improved results from the new strategy. We have seen important customer wins in both bananas and salads, and most of the restructuring activities are already complete."
Comparable basis amounts exclude certain items described below under "Non-GAAP Measurements and items affecting comparability."
2012 THIRD QUARTER SUMMARY
The following table shows adjustments and reconciling items made to "Net income (loss)" and "Diluted earnings (loss) per share" between comparable and GAAP results. See "Non-GAAP Measurements and items affecting comparability" below for descriptions of items excluded on a comparable basis, including descriptions of how these items affect the results of reportable segments.