Banana war takes toll on Dole

21 September 1999

Banana war takes toll on Dole

THE trade war between the EU and the USA over bananas will take its toll on Dole Foods third quarter results, according to the worlds largest producer of fresh fruit and vegetables.

The combination of oversupply in the European banana market, weather damage to crops and weak prices in the newly acquired flower business will keep earnings below previous estimates, Dole said.

Analysts had expected third-quarter earnings of 13¢ per share, down from 26¢ the year before. Dole now expects earnings from continuing operations to be “in a break-even to slight loss position” for the quarter.

The groups market value has halved since last August to about $1.3 billion (£801m), as banana supplies have outstripped the growth in consumption.

Weak demand in Russia and China have compounded the US banana suppliers problems with European Union import quotas.

• Financial Times 21/09/99 page 34