Fresh Del Monte's 3Q net income falls 73 percent

Produce company Fresh Del Monte's 3Q net income drops 73 percent, hurt by higher fruit costs

Associated Press

NEWS: Fresh Del Monte Produce Inc.'s said Tuesday that its third-quarter net income fell 73 percent as higher fruit costs hurt results.

DETAILS: The produce company said costs for bananas, melons and other fruits rose. In the third quarter, revenue from bananas jumped 12 percent to $402.3 million. But unit costs also rose 12 percent, and gross profit shrank to $1.3 million from $20 million a year ago. Costs rose 20 percent for melons, 14 percent for tomatoes and 3 percent for pineapples.

NUMBERS: Net income fell to $6.4 million, or 11 cents per share, in the three months ending Sept. 27. That compares with $23.5 million, or 40 cents per share, in the same period a year ago. Revenue rose 9 percent to $861.1 million.

STOCK: Down $2.94, or 9.7 percent, to $27.25 in afternoon trading Tuesday.

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