20 December 1999
Second Dole profits warning
DOLE Foods, the worlds largest fruit and vegetable producer, has issued its second profit warning in three months.
It blames European banana prices and other product disappointments.
A worldwide glut in bananas and a collapse in European banana prices have hit prices.
Dole said it expected fourth-quarter earnings to be between 2¢ and 4¢, far lower than an estimated 16¢.
The disappointing fourth quarter for Dole follows an $8m loss in the third quarter.
The loss prompted the company to plan a $40m charge in the fourth quarter, as it cut 9000 jobs and attempted to reduce its reliance on bananas.
The company also blamed lower lettuce prices and consolidation costs in its fresh-cut flowers business for its problems.
- Dole cuts back bananas, FWi, 05 November, 1999
- Banana war takes toll on Dole, FWi, 21 September, 1999
- Financial Times 20/12/99 page 26