• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Chiquita Provides Interim Price and Volume Data for Bananas and Retail Value-Added Salads for Third Quarter 2006

Posted on: Tuesday, 12 September 2006, 09:00 CDT

CINCINNATI, Sept. 12 /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. today announced information on Chiquita banana and Fresh Express retail value-added salad prices and volumes for July and August 2006 in each of its principal markets.

Core European Markets

In the European Union, Switzerland, Norway and Iceland, Chiquita's average banana prices declined 17 percent on a local currency basis (down 12 percent on a U.S. dollar basis) in the first two months of the 2006 third quarter, compared to the same period a year ago. The lower average European prices in July-August 2006 period reflect unseasonably warm weather in many parts of Europe, which depressed consumer demand, as well as the impact of regulatory changes in the market that have resulted in an increase in market competitors at the low end of the price spectrum.

In January 2006, the European Commission implemented a new regulation for the importation of bananas into the European Union. It imposes a tariff rate of euro 176 per metric ton (euro 3.19 per box) on bananas imported from Latin America, up from euro 75 per metric ton (euro 1.36 per box) under the former regime, and eliminates the quota that had previously applied to Latin American banana imports.

The volume of bananas the company sold in its core European markets rose 11 percent overall in the July-August 2006 period. The company continued its strategic focus on maximizing sales of premium-quality fruit, selling 12 percent more premium Chiquita-label bananas, while the volume of second-label fruit was essentially flat year-over-year.

Trading Markets

In July-August 2006, banana volume sold in the company's trading markets, comprised of European and Mediterranean countries that do not belong to the European Union, rose to approximately 3.6 million boxes versus 0.9 million boxes in the year-ago two-month period as the company sold significant amounts of excess banana supply from Central American producers into these markets at average banana prices that were 21 percent lower year-over-year.

North America

Average banana prices in the United States and Canada rose 10 percent in the first two months of the 2006 third quarter versus the same period last year. The increase primarily reflects successful negotiations of customer contracts at higher pricing levels as well as the impact of the company's surcharge policy initiated in the fourth quarter 2005, which is linked to the average market price of marine bunker fuel.

Banana volume sold in the region was essentially flat, down 1 percent year-over-year in the two-month period, as the company recovered from weather- related disruptions that had impacted banana supply since late 2005.

Asia Pacific and the Middle East

Banana prices in this region fell 11 percent on a U.S. dollar basis in July-August 2006, compared to a year ago. The volume of bananas the company sold in Asia Pacific and the Middle East rose 20 percent year-over-year in the two-month period, due primarily to growth in markets outside of Japan.

Fresh Express Value-Added Salads

In the company's Fresh Express retail value-added salads business, volume rose 17 percent in the two-month period, as distribution gains and new product introductions, including the launch of a new line of salad blends, continued to drive strong year-over-year growth. Net revenue per case rose 2 percent compared to the year-ago period.

With annual revenues of more than $4 billion, Chiquita Brands International, Inc. is a leading international marketer and distributor of high-quality fresh and value-added food products - from energy- rich bananas and other fruits to nutritious blends of convenient green salads. The company's products and services are designed to win the hearts and smiles of the world's consumers by helping them enjoy healthy fresh foods. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide. For more information, please visit our web site at http://www.chiquita.com/.

This press release contains certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Chiquita, including the impact of the 2006 conversion to a tariff-only banana import regime in the European Union; unusual weather conditions; industry and competitive conditions; financing; the customary risks experienced by global food companies, such as the impact of product and commodity prices, currency exchange rate fluctuations, government regulations, labor relations, taxes, crop risks, political instability and terrorism; and the outcome of pending governmental investigations and claims involving the company.

Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the company undertakes no obligation to update any such statements. Additional information on factors that could influence Chiquita's financial results is included in its SEC filings, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

EXHIBIT: Year-over-Year Percentage Change (1) July-August 2006 vs. July-August 2005 CHIQUITA BANANAS Pricing Volume Core European Markets (2) U.S. dollar basis (3) -12% +11% Local currency -17% North America +10% -1% Asia Pacific and the Middle East (5) U.S. dollar basis (4) -11% +20% FRESH EXPRESS RETAIL VALUE-ADDED SALADS Net Revenue Per Case Volume North America +2% +17% (1) These statistics may not be indicative of future results. (2) The 25 countries of the European Union, Switzerland, Norway and Iceland. (3) Prices on a U.S. dollar basis do not include the impact of hedging. (4) Most of the company's business in this region is invoiced in U.S. dollars. (5) The company primarily operates through joint ventures in this region.

Chiquita Brands International, Inc.

CONTACT: Michael Mitchell of Chiquita Brands International, Inc.,+1-513-784-8959, mmitchell@chiquita.com

Web site: http://www.chiquita.com/

Source: PRNewswire-FirstCall

More News in this Category