Chiquita Brands has reported a lower fourth-quarter loss than a year ago, aided by higher prices for bananas and recovery in the salad business.
Chiquita said on Tuesday that it lost $26 million (£13.3m), or 67 cents per share for the quarter ended December 31 - compared to a loss of nearly $42 million, or 98 cents a share, in the year-earlier period.
Chiquita attributed the lion’s share of the loss to a charge of $26m, related to the company's previously announced restructuring plan.
Chiquita sales rose six per cent to $1.15 billion, compared with $1.08bn in the fourth quarter of 2006. Quarterly sales rose primarily due to higher banana pricing in core European and North American markets and favourable foreign exchange rates.
Thomson Financial says analysts had expected the company to lose 10 cents a share in the fourth quarter on revenue of $1.1bn.
Fernando Aguirre, chairman and chief executive officer, said: “We have continued to focus on pricing in bananas and recovery in value-added salads to help offset persistent external cost challenges."
For 2007, the company reported an earnings loss of $49m, compared to a loss of $95.5m for the previous year. Sales increased around four per cent to $4.66bn, from $4.49bn in 2006.
Chiquita said in October that it would begin cutting management and production jobs, close facilities and leave businesses as part of a restructuring plan to reduce costs by $60m to $80m a year. Chiquita has said it plans to cut around 700 jobs, including around 160 management jobs, across its global businesses.
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