Chiquita Announces First Quarter Results

Apr 24, 2001, 01:00 ET from Chiquita Brands International, Inc.

    CINCINNATI, April 24 /PRNewswire Interactive News Release/ --
 Chiquita Brands International, Inc. (NYSE:   CQB) today reported first quarter
 net income of $4 million ($.01 per share), compared to earnings of $35 million
 ($.43 per share) in the first quarter of 2000.  Earnings before interest,
 taxes, depreciation and amortization (EBITDA) for the first quarter of 2001
 was $61 million compared to $92 million in the first quarter of 2000.
     The Company's results declined primarily as a result of a stronger dollar
 in relation to major European currencies.  The effect of lower banana pricing
 in North America and Japan was partially offset by improved pricing in Europe
 on a local currency basis.  Operating results for the Processed Foods business
 declined from the prior year primarily as a result of lower pricing for canned
 vegetables.
     Net sales for the first quarter of 2001, excluding the effects of prior
 year divestitures, decreased approximately 4% from the 2000 first quarter
 primarily as a result of the stronger dollar.
     On April 11, 2001, the United States and European Commission announced an
 agreement regarding the long-standing dispute over the European Union ("EU")
 banana import regime.  The agreement is expected to result in partial recovery
 in future periods of the EU market opportunities previously available to
 Chiquita and Latin American producing nations.  Subject to establishment of
 definitive regulations for this new regime, the agreement is a positive
 development for Chiquita and Latin American banana interests.  However, the
 Company still intends to proceed with the previously announced parent company
 debt restructuring.  This restructuring initiative is necessitated by the
 cumulative effect on Chiquita of the EU's discriminatory banana import regimes
 over the past eight years, as well as the accelerated weakening of European
 currencies in recent years.
     Chiquita is a leading international marketer, producer and distributor of
 quality fresh fruits and vegetables and processed foods.
     This press release contains certain statements that are "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  These statements are subject to a number of assumptions, risks and
 uncertainties, including the implementation of the announced U.S. - EU
 agreement regarding the EU's banana import regime, the Company's ability to
 reach agreement with holders of the parent company debt regarding a
 restructuring of such debt, the terms of any such restructuring, prices at
 which Chiquita can sell its products, the costs at which it can purchase or
 grow (and availability of) fresh produce and other raw materials, currency
 exchange rate fluctuations, natural disasters and unusual weather conditions,
 operating efficiencies, labor relations, actions of governmental bodies, and
 other market and competitive conditions, many of which are beyond the control
 of Chiquita.  Actual results or developments may differ materially from the
 expectations expressed or implied in the forward-looking statements, and the
 Company undertakes no obligation to update any such statements.
 
 
                       CHIQUITA BRANDS INTERNATIONAL, INC.    PRELIMINARY
                         CONSOLIDATED INCOME STATEMENT
                 FOR THE QUARTER ENDED MARCH 31, 2001 AND 2000
                    (In millions, except per share amounts)
                                                             Quarter Ended
                                                               March 31,
                                                          2001           2000
 
 
     Net sales                                           $577.3         $658.1
 
     Operating expenses:
       Cost of sales                                      462.4          498.0
       Selling, general and administrative                 56.9           69.7
       Depreciation                                        20.8           22.6
         Total                                            540.1          590.3
 
     Operating income                                      37.2           67.8
 
     Interest income                                        3.0            3.1
     Interest expense                                     (32.7)         (32.0)
     Other income, net                                      0.1            0.1
 
     Income before income taxes                             7.6           39.0
     Income taxes                                          (3.5)          (4.0)
 
     Net income                                            $4.1          $35.0
 
 
     Diluted earnings per share                           $0.01          $0.43
 
     Shares used to calculate diluted
       earnings per share                                  68.8           81.9
 
     EBITDA*                                              $60.7          $92.1
 
     Quarterly results are subject to significant seasonal variations and are
 not necessarily indicative of the results of operations for a full fiscal
 year.
 
     * EBITDA for the 2001 first quarter excludes $1.1 million of costs
       incurred in connection with the proposed parent company debt
       restructuring.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X67977688
 
 

SOURCE Chiquita Brands International, Inc.
    CINCINNATI, April 24 /PRNewswire Interactive News Release/ --
 Chiquita Brands International, Inc. (NYSE:   CQB) today reported first quarter
 net income of $4 million ($.01 per share), compared to earnings of $35 million
 ($.43 per share) in the first quarter of 2000.  Earnings before interest,
 taxes, depreciation and amortization (EBITDA) for the first quarter of 2001
 was $61 million compared to $92 million in the first quarter of 2000.
     The Company's results declined primarily as a result of a stronger dollar
 in relation to major European currencies.  The effect of lower banana pricing
 in North America and Japan was partially offset by improved pricing in Europe
 on a local currency basis.  Operating results for the Processed Foods business
 declined from the prior year primarily as a result of lower pricing for canned
 vegetables.
     Net sales for the first quarter of 2001, excluding the effects of prior
 year divestitures, decreased approximately 4% from the 2000 first quarter
 primarily as a result of the stronger dollar.
     On April 11, 2001, the United States and European Commission announced an
 agreement regarding the long-standing dispute over the European Union ("EU")
 banana import regime.  The agreement is expected to result in partial recovery
 in future periods of the EU market opportunities previously available to
 Chiquita and Latin American producing nations.  Subject to establishment of
 definitive regulations for this new regime, the agreement is a positive
 development for Chiquita and Latin American banana interests.  However, the
 Company still intends to proceed with the previously announced parent company
 debt restructuring.  This restructuring initiative is necessitated by the
 cumulative effect on Chiquita of the EU's discriminatory banana import regimes
 over the past eight years, as well as the accelerated weakening of European
 currencies in recent years.
     Chiquita is a leading international marketer, producer and distributor of
 quality fresh fruits and vegetables and processed foods.
     This press release contains certain statements that are "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  These statements are subject to a number of assumptions, risks and
 uncertainties, including the implementation of the announced U.S. - EU
 agreement regarding the EU's banana import regime, the Company's ability to
 reach agreement with holders of the parent company debt regarding a
 restructuring of such debt, the terms of any such restructuring, prices at
 which Chiquita can sell its products, the costs at which it can purchase or
 grow (and availability of) fresh produce and other raw materials, currency
 exchange rate fluctuations, natural disasters and unusual weather conditions,
 operating efficiencies, labor relations, actions of governmental bodies, and
 other market and competitive conditions, many of which are beyond the control
 of Chiquita.  Actual results or developments may differ materially from the
 expectations expressed or implied in the forward-looking statements, and the
 Company undertakes no obligation to update any such statements.
 
 
                       CHIQUITA BRANDS INTERNATIONAL, INC.    PRELIMINARY
                         CONSOLIDATED INCOME STATEMENT
                 FOR THE QUARTER ENDED MARCH 31, 2001 AND 2000
                    (In millions, except per share amounts)
                                                             Quarter Ended
                                                               March 31,
                                                          2001           2000
 
 
     Net sales                                           $577.3         $658.1
 
     Operating expenses:
       Cost of sales                                      462.4          498.0
       Selling, general and administrative                 56.9           69.7
       Depreciation                                        20.8           22.6
         Total                                            540.1          590.3
 
     Operating income                                      37.2           67.8
 
     Interest income                                        3.0            3.1
     Interest expense                                     (32.7)         (32.0)
     Other income, net                                      0.1            0.1
 
     Income before income taxes                             7.6           39.0
     Income taxes                                          (3.5)          (4.0)
 
     Net income                                            $4.1          $35.0
 
 
     Diluted earnings per share                           $0.01          $0.43
 
     Shares used to calculate diluted
       earnings per share                                  68.8           81.9
 
     EBITDA*                                              $60.7          $92.1
 
     Quarterly results are subject to significant seasonal variations and are
 not necessarily indicative of the results of operations for a full fiscal
 year.
 
     * EBITDA for the 2001 first quarter excludes $1.1 million of costs
       incurred in connection with the proposed parent company debt
       restructuring.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X67977688
 
 SOURCE  Chiquita Brands International, Inc.