Dole Food Co., Inc. announced its financial and operating results for the second quarter ended June 18, 2011. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 36 percent to $153 million compared to $113 million in the second quarter of 2010. GAAP income from continuing operations for the second quarter of 2011 was $83 million, or $0.94 per share, compared to $34 million, or $0.38 per share, in the second quarter of 2010. Comparable Income from continuing operations for the second quarter of 2011 was $86 million, or $0.98 per share, compared to $44 million, or $0.50 per share, in the second quarter of 2010.
For the first half of 2011, Adjusted EBITDA increased 31 percent to $259 million. For the first half of fiscal 2011, GAAP income from continuing operations increased $29 million to $85 million, which represented a 50 percent increase to $0.96 per share. Comparable income for the first half of 2011 increased $72 million to $131 million, which represented an increase of $0.82 per share to $1.49 per share.
David A. DeLorenzo, Dole’s president and CEO said in a prepared statement, “We are extremely pleased with the continued improvement of our financial results in the second quarter, with operating income rising 52 percent to $122 million and Adjusted EBITDA increasing 36 percent to $153 million. Each of our operating segments benefitted from improved pricing and higher volumes, and in addition our fresh fruit segment also benefitted from our restructuring program. While first half performance was well ahead of plan, our third quarter earnings are expected to be below last year, due to the container settlement we received in 2010, and lower banana prices in Europe thus far this summer. For the full year 2011, we continue to expect significant improvement of our earnings as compared to 2010.”
Revenues increased 10 percent to $1.9 billion during the quarter ended June 18, 2011, as compared to the second quarter of 2010. Fresh fruit revenues increased 12 percent as a result of improved global banana markets. In addition, favorable foreign currency exchange movements in Europe and Japan benefitted revenues. Packaged foods revenues increased 9 percent primarily due to higher pricing worldwide as well as higher volumes sold in North America and Asia. Fresh vegetables revenues increased 4 percent as a result of improved pricing and higher volumes sold of packaged salads.
Adjusted EBITDA increased 36 percent or $40 million to $153 million in the second quarter of 2011 as compared to the second quarter of 2010. Fresh fruit Adjusted EBITDA increased due to improved performance in Dole’s banana operations primarily as a result of improved global banana markets as well as lower shipping and distribution costs in Europe resulting from the 2010 restructuring initiatives. These improvements were partially offset by higher fruit costs worldwide, higher shipping costs in North America and Asia, as well as $5.9 million of restructuring charges. Packaged foods Adjusted EBITDA increased primarily due to higher pricing partially offset by higher product, selling, marketing and general and administrative expenses. Fresh vegetables Adjusted EBITDA decreased as a result of higher product costs in the fresh-packed vegetables business. In addition, packaged salads results were slightly lower as higher raw material costs were partially offset by improved pricing.
