Fresh Del Monte Sees 7 Percent Net Sales Increase For Second Quarter 2013

Fresh Del Monte Produce Inc. reported financial results for the quarter ended JuneĀ 28, 2013. The company reported earnings per diluted share of $1.10 for the second quarter of 2013, compared with earnings per diluted share of $0.99 in the second quarter of 2012. Excluding asset impairment and other charges, and a non-comparable item, adjusted earnings per diluted share were $1.02 in the second quarter of 2013, compared with $1.01 in the second quarter of 2012. The non-comparable item was cash received as a result of a favorable judgment awarded in litigation of $16.6 million, or $0.29 per diluted share.

"We were pleased with the strong top line performance and momentum generated during the second quarter of 2013," said Mohammad Abu-Ghazaleh, chairman and chief executive officer, in a prepared statement. "Our growth in the second quarter was fundamentally driven by our ability to increase sales through core product line growth, extending our reach in non-conventional delivery channels, expanding our global brand presence, product innovation, and continued consumer demand for healthy, fresh produce. We believe Fresh Del Monte's financial depth and flexibility allows us to continue to leverage these capabilities and strengthen our leadership position in the global fresh produce industry."

Net sales for the second quarter of 2013 were $1,023.9 million, compared with $957.6 million in the prior year period. The increase in overall net sales for the quarter was the result of increased selling prices in all of the company's business segments and higher sales volume in the company's banana and other fresh produce business segments.

Gross profit for the second quarter of 2013 was $105.9 million, compared with $116.4 million in the second quarter of 2012. The decrease in gross profit for the quarter was due to higher costs related to the production and procurement of fruit and ocean freight.

Operating income for the second quarter of 2013 was $51.2 million, compared with $69.8 million in the prior year period. Excluding asset impairment and other charges, the company had operating income of $63.1 million in the second quarter of 2013, compared with operating income of $70.8 million in the second quarter of 2012. The decrease in operating income was primarily due to lower gross profit.

Net income for the second quarter of 2013 was $62.0 million, compared with $57.2 million in the second quarter of 2012. Excluding asset impairment and other charges, and non-comparable items, the company had net income of $57.3 million in the second quarter of 2013, compared with net income of $58.2 million in the second quarter of 2012.

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