Chiquita Brands Swings To Profit In 3Q

CINCINNATI (AP) — Chiquita Brands International Inc. said Tuesday it earned a profit in the third quarter, compared with a year-ago loss, as it trimmed costs and better managed its pricing strategy to deal with seasonal shifts.

The Cincinnati-based banana and produce seller earned $5 million, or 11 cents per share, in the quarter that ended Sept. 30. That compares with a loss of $7 million, or 16 cents per share, a year earlier.

Chiquita said its results were hurt by restructuring charges, as it moves its European headquarters to Switzerland from Belgium for tax advantages, and by non-cash interest expenses.

But adjusted profit of 20 cents per share beat a prediction of analysts polled by Thomson Reuters that the company would lose 16 cents per share.

Revenue fell 5 percent to $801 million from $840 million, mainly as the company got rid of unprofitable foodservice contracts in its salad division, leading to lower sales volumes. But results still topped analysts' $774 million estimate.

The company also reiterated that fiscal 2009 adjusted profit will be significantly better than the $1.12 per share reported in 2008. Analysts expect per-share profit of $2.17 in 2009, on average.