Chiquita's improvement in results saw earnings before interest, tax, depreciation, amortisation, reorganisation costs and other unusual charges rise to $155million in 2001 compared to $145m in 2000. The improvement was down to a strong performance from the company's fresh produce business following a firming of prices and increased volumes in the banana trade with Europe. Results in the processed foods operation declined, however.

Reorganisation costs were $34m during 2001 ($27m during the fourth quarter) and included professional fees and the write-off of parent company debt issue costs. The other unusual charges of $28m ($20m during the fourth quarter) were primarily associated with the closure of farms, a third quarter workers'strike and related labour and industrial relations issues at the company's Armuelles banana production division in Panama. The company closed non-competitive farms that represented about 20 per cent of this division and has reached an agreement with the local union regarding work practices that should lead to gradual improvements in productivity, cost and quality in the remaining farms.

Chiquita filed a pre-arranged plan of reorganisation in late November 2001 under Chapter 11 of the U.S. Bankruptcy Code in the federal court in Cincinnati. The plan is scheduled for a confirmation hearing on March 8. The plan will reduce Chiquita's debt and accrued interest by more than $700m and its future annual interest expense by about $60m.

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