logo
Share SHARE
FONT-SIZE Plus   Neg

Dole Food Posts Q4 Loss - Update

Fruits and vegetable producer Dole Food Co. Inc. (DOLE), Tuesday reported a loss for the fourth quarter from a profit last year, hurt mainly by costs related to divestiture of two businesses and lower revenues as a consequence. Following the news, shares of Dole slipped a near five percent in after-hours trade on the Nasdaq..

Westlake Village, California-based Dole Foods reported a loss of $210 million for the fourth quarter, compared to a profit of $4 million last year.

Last September, Dole Food agreed to sell its worldwide packaged foods and Asia fresh produce businesses to Japanese trading company Itochu Corp. (ITOCY) for $1.69 billion in cash. The consummation of the sale will be on April 1, 2013.

Following the sale, Dole will have two lines of businesses classified as continuing operations, while the worldwide packaged foods and Asia fresh are accounted as discontinued operations.

Fourth-quarter loss from continuing operations was $88 million or $0.99 per share, compared to income from continuing operations of $6 million or $0.06 per share last year.

The latest quarter results include Itochu transaction related costs of $40 million.

Comparable loss was $52 million or $0.59 per share, compared to comparable income of $4 million or $0.05 per share last year.

On average, four analysts polled by Thomson Reuters expected a loss of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

Chief Operating Officer Michael Carter said, "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."

Dole's revenues from continuing operations dropped to $888 million from $962 million last year.

Four analysts had a consensus revenue estimate of $1.30 billion for the quarter.

DOLE closed Tuesday's trading at $11.73, up $0.07 or 0.60%. The stock slipped $0.43 or 4.52% in after hours.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Qatar's sovereign wealth fund has acquired a 9.9 percent stake in the company that owns the iconic Empire State Building, which was once the world's tallest building. Empire State Realty Trust, which owns the 102 storied, 1,454-foot skyscraper, said Tuesday that an affiliate of Qatar Investment Authority or QIA has acquired a 9.9 percent interest in the company through a $622 million investment. Shares of Glencore International Plc. declined around 6 percent in London trading after the Commodities trader reported Wednesday wider pre-tax loss in its first half with weak revenues, amid lower commodity prices. Attributable net loss, however, narrowed from last year. Shares of WPP Group Plc. were gaining around 6 percent in the morning trading on London after the advertising giant reported Wednesday positive current trading and expectations for increased results. This was after reporting higher headline profit and increased revenues in its first half, even as reported profit declined from last year. The company also announced a significant dividend growth.
comments powered by Disqus
Follow RTT