Fresh Del Monte Produce Inc. Announces Strong Third Quarter 2012

Fresh Del Monte Produce Inc. reported financial results for the quarter ended Sept. 28, 2012. The company reported earnings per diluted share of $0.40 for the third quarter of 2012 compared with earnings per diluted share of $0.21 in the third quarter of 2011. Excluding asset impairment and other charges, earnings per diluted share were $0.45 in the third quarter of 2012, compared with earnings per diluted share of $0.22 in the third quarter of 2011.

"We are very pleased with the strong bottom-line performance Fresh Del Monte Produce achieved in the third quarter of 2012," said Mohammad Abu-Ghazaleh, chairman and chief executive officer, in a prepared statement. "We saw excellent growth in our global fresh-cut business. The decision to take full control of the marketing, sales and distribution of our products at the beginning of the year in Southern Europe contributed to our improved performance. We also realized efficiency improvements in our logistics and cost control initiatives that directly improved our bottom-line performance. We will continue to manage our business to maximize growth and enhance shareholder value.”

Net sales for the third quarter of 2012 were $788.8 million, compared with $795.2 million in the prior year period. The decrease in net sales for the quarter was primarily the result of lower net sales in the company's banana business segment, primarily due to continued lower banana sales volume in the Middle East secondary markets and in Europe.

Gross profit for the third quarter of 2012 was $74.4 million, compared with $62.9 million in the third quarter of 2011. The company had gross profit of $75.2 million in the third quarter of 2012, excluding other charges of $0.8 million. The increase in gross profit for the quarter was primarily due to higher selling prices in the company's banana business segment and lower ocean freight costs.

Operating income for the third quarter of 2012 was $28.2 million, compared with $17.0 million in the prior year period. Excluding asset impairment and other charges, the company had operating income of $31.1 million in the third quarter of 2012, compared with operating income of $17.6 million in the third quarter of 2011.

Net income for the third quarter of 2012 was $23.5 million, compared with $12.2 million in the third quarter of 2011. Excluding asset impairment and other charges, the company had net income of $26.4 million in the third quarter of 2012, compared with net income of $12.8 million in the third quarter of 2011. 

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