Net sales for the period were $793 million, up $322 million from $471 million in the first quarter of 2003.
Atlanta AG, a German fresh produce distributor acquired at the end of March 2003, accounted for $283 million of the increase. The remainder resulted from favorable European exchange rates and increased other fresh produce sales, partially offset by lower local banana pricing.
Operating income from continuing operations in the first quarter of 2004 was $32 million, compared to $38 million in the year-ago period.
This income included a $4 million charge related to stock options and restricted stock previously granted to the company's chairman and former ceo that will vest immediately upon his retirement as chairman on May 25, 2004; $3 million of operating losses related to the start-up of the company's fresh cut fruit operation; $2 million of costs associated with higher legal and professional fees; and $2 million of expenses associated with investment spending.
Fernando Aguirre, president and ceo, said: "We had a strong quarter. In spite of difficult market conditions, our underlying
business performance was on par with the strong results posted in the year-ago period. We faced lower local pricing in North America and Europe, but we realised benefits from currency exchange and Atlanta's restructuring. Moreover, pricing has improved since the end of the quarter."
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