Fresh Del Monte Produce 3Q profit falls on charges

Fresh Del Monte 3rd-quarter profit declines as charges hurt results in seasonally slow period

• On 8:08 am EDT, Tuesday October 27, 2009

CORAL GABLES, Fla. (AP) -- Fresh Del Monte Produce Inc. said Tuesday that its profit dipped in the third quarter, a seasonally slow period for the seller of prepared and fresh fruits and vegetables, as some charges hurt results.

Lower volume and selling prices for its gold pineapple products, along with increased procurement costs in its banana operations led gross profit to fall to $69 million from $79 million.

Fresh Del Monte earned $28.6 million, or 45 cents per share. That's down 2 percent from $29.3 million, or 46 cents per share, a year earlier.

Removing asset impairment charges and other items, profit was 61 cents per share. The company said its results were helped by tax benefits, favorable foreign currency exchanges and lower interest expense.

The earnings beat the 37 cents-per-share forecast of analysts polled by Thomson Reuters. Analysts' estimates normally exclude one-time items.

Chairman and CEO Mohammad Abu-Ghazaleh said in a statement that the third quarter is typically a seasonally weaker period for the company.

Sales for the period ended Sept. 25 slipped 8 percent to $766.2 million from $832.9 million, missing Wall Street's estimate of $819 million.

Banana sales were strong on increased demand and higher selling prices, but that was offset by lower sales of other fresh produce, prepared foods and other products and services.

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