Chiquita logo close-up

Chiquita Brands International has revealed a loss of US$411m, or US$9.27 per diluted share, for the fourth quarter of 2008, a significant year-on-year fall from a loss of US$23m in the same period of 2007.

On a comparable basis, the group's loss stood at US$33m, down from income of US$3m last year, while net sales for the quarter remained flat at US$839m.

'Our fourth quarter results were lower year-on-year due to higher costs including flood impacts, a weaker euro and lower performance in salads,' said group CEO Fernando Aguirre (pictured). 'We took a non-cash goodwill impairment charge for Fresh Express in the fourth quarter, primarily due to current economic conditions and lower category growth expectations.'

For the full-year, Chiquita recorded a net sales increase of 4 per cent to US$3.6bn, with a loss from continuing operations of US$325m – up from a loss of US$46m in 2007.

Fernando Aguirre'We overcame unprecedented cost challenges in 2008 and significantly improved comparable full-year results versus 2007,' Mr Aguirre said. 'We sold non-strategic assets, strengthened out financial position, reduced controllable costs, extended our geographic growth and continued positioning the company for long-term success.'

The economic environment will continue to create challenges for the group in 2009, with full-year results expected to improve on a comparable basis. This will be done through profit-improvement strategies and cost reduction initiatives, the group said.

The banana supply/demand balance in Latin America remains 'relatively favourable' with stable consumer demand, although sourcing and production coasts are expected to further increase in 2009.

Meanwhile, Chiquita said that it expected to record improved results in both salads and healthy snacks during the year.

'Although the economic environment is uncertain, we expect to improve full-year results in 2009 on a comparable basis,' Mr Aguirre added. 'We believe we have the right products and strategy to leverage global health and wellness trends and are executing our profit improvement plans in salads, maintaining our focus on profitability in bananas, and innovating towards higher-margin products.'