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Chiquita Provides Interim Banana and Retail Value-Added Salad Price and Volume Data for Fourth Quarter 2005

Posted on: Thursday, 15 December 2005, 12:00 CST

CINCINNATI, Dec. 15 /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. today announced information on Chiquita banana and Fresh Express retail value-added salad prices and volume for October and November, the first two months of its 2005 fourth quarter, in each of its principal markets.

Europe

In the European Union, Norway, Iceland and Switzerland, Chiquita's average banana prices rose 21 percent on a U.S. dollar basis (27 percent on a local currency basis) in the first two months of the 2005 fourth quarter, compared to the same period a year ago. The company attributed the higher average European prices to competition for import licenses, the impact of higher delivered costs for fuel and shipping, and expanded sales of premium-label volumes. The volume of bananas the company sold in its core European markets fell 3 percent in the first two months of the quarter, compared to the same period a year ago, as the company sold less second-label fruit.

North America

Average banana prices in the United States and Canada rose 3 percent in the first two months of the quarter versus the same period last year. The company attributed the pricing increase primarily to the impact of a surcharge implemented in September to partially offset rising costs for fuel-related products and transportation. Banana volume in the period fell 6 percent due primarily to the disruptive impact of recent storms, including Hurricanes Katrina, Rita and Stan, on logistics and sourcing.

In the company's Fresh Express retail value-added salads business, volume rose 6 percent, as new product introductions, such as reconfigured and relaunched complete salad kits, drove year-over-year growth. Net revenue per case also rose 6 percent compared to the year-ago period. Higher cost of sales and market development spending offset essentially all of the positive impact of the volume and revenue increase.

Asia and the Middle East

The volume of bananas the company sold in this region in the first two months of the fourth quarter rose 42 percent from the same period a year ago, due in large part to increased sales in Iran and Japan. Banana prices in Asia and the Middle East fell 10 percent on a U.S. dollar basis (7 percent on a local currency basis) in the first two months of the 2005 fourth quarter, compared to a year ago, due primarily to lower pricing in Japan.

A summary of Chiquita banana and Fresh Express retail value-added salad pricing and volume data is presented in the tables below.

Year-over-Year Percentage Change (1) October-November 2005 vs. October-November 2004 CHIQUITA BANANAS Pricing Volume Core European Markets (2) U.S. dollar basis 21 % -3 % Local currency 27 % North America 3 % -6 % Asia and the Middle East (3) U.S. dollar basis -10 % 42 % Local currency -7 % FRESH EXPRESS VALUE-ADDED SALADS Net Revenue Volume Per Case North America 6 % 6 % (1) These statistics may not be indicative of future results. (2) The 25 countries of the European Union, Norway, Iceland and Switzerland. (3) The company primarily operates through joint ventures in this region.

Chiquita Brands International, Inc. (http://www.chiquita.com/) is a leading international marketer and distributor of high-quality fresh and value-added produce, which is sold under the Chiquita(R) premium brand, Fresh Express(R) and other related trademarks. The company is one of the largest banana producers in the world and a major supplier of bananas in Europe and North America. In June 2005, Chiquita acquired Fresh Express, the U.S. market leader in value-added salads, a fast-growing food category for grocery retailers, foodservice providers and quick-service restaurants.

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

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