Dole Food Company, Inc. Announces Third Quarter 2012 Results
Revenues decreased 6% to $2 billion during the third quarter ended October 6, 2012, primarily as a result of the divestitures of two of our fresh fruit subsidiaries (German subsidiary and Dole Spain). Excluding third quarter 2011 revenues of $186 million from these divested businesses as well as third quarter 2012 sales of $13 million from the fourth quarter 2011 berry business acquisition, third quarter sales increased 2%. Fresh fruit revenues, excluding the impact from the divestitures, increased slightly primarily as a result of improved pricing and higher volumes in Europe and improved pricing for Chilean deciduous fruit and other fresh fruit sold in Asia. Lower pricing and volumes for bananas in North America and Asia somewhat offset these increases. Fresh vegetables revenues increased 10%, primarily due to improved pricing for fresh-packed vegetables and packaged salads, and the berry business acquisition. Excluding the berry acquisition, fresh vegetables revenue improved 6%. Packaged foods revenues increased 3%, primarily due to higher sales of frozen fruit and healthy snacks in North America, partially offset by lower volumes of packaged fruit products sold in North America.
Adjusted EBITDA was $62.4 million in the third quarter of 2012 compared to $61.1 million in the prior year. Packaged foods Adjusted EBITDA increased as a result of lower product and distribution costs in North America and improved pricing for frozen fruit. Fresh fruit Adjusted EBITDA decreased primarily due to lower pricing for bananas in North America and Asia as well as higher fruit and distribution costs in Asia, partially offset by lower shipping and fruit costs in Europe. Disruptions from delays related to China quarantine regulations contributed to lower pricing and higher costs in the Asia market. Fresh vegetables Adjusted EBITDA decreased 5%. Lower earnings in the strawberry and packaged salads businesses were partially offset by higher pricing in the fresh-packed vegetables business. Strawberry earnings were impacted by poor growing conditions resulting in higher costs. Packaged salads earnings were impacted by approximately $4.6 million of costs related to the precautionary recall of a limited number of packaged salad products.
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