Dole sign FL

Dole Food Company has revealed that it made a loss during both the fourth quarter and full-year of 2012, as conditions in the banana market and charges related to the sale of its worldwide packaged foods and Asian business to Itochu impacted on results.

The US-based group, which will complete the US$1.68bn (€1.3bn) cash sale to Itochu on 1 April, made a net loss of US$142m (€109m) for the 12-month period, down from net income of US$42m (€32m) in 2011.

Revenue for the year dropped to US$4.2bn from US$4.7bn, while adjusted EBITDA from continuing operations stood at US$146m compared with US$196m in 2011.

'Fiscal 2012 results for both Dole’s continuing operations and its discontinued operations were lower compared to 2011 mainly due to banana market conditions and non-recurring charges for Itochu transaction-related costs, provisions for certain previously-disclosed legal-related matters, and charges related to Typhoon Bopha in Asia,' said Michael Carter, Dole’s president and COO. 'The combined revenue of Dole’s discontinued operations being sold represented approximately 38 per cent of Dole’s revenues, at US$2.6bn in 2012.

'The new Dole will continue asan international commodity produce company with a smaller footprint, retaining its entire North American fresh vegetables business as well asits fresh fruit businesses in North America, Latin America, Europe and Africa, which together generated US$4.2bn in revenues in fiscal 2012and Adjusted EBITDA from continuing operations of US$146 million,' he added.

Looking ahead, Carter noted that the group anticipated adjusted EBITDA for 2013 to be at the low endof the guidance range previously given (in February), with a continuing declining trend in fresh fruit performance principally due to banana market conditions.

'Whilethe current environment in the banana market remains challenging, we are optimistic that this transformative sale transaction will leave the new Dole with the financial and operational flexibility to grow in this competitive environment,' he concluded.

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