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Dole Receives Approval From China To Sell Worldwide Packaged Foods And Asia Fresh Produce Business

Adjusted EBITDA

Adjusted EBITDA was $146 million for the year ended December 29, 2012 compared to $196 million in the prior year. Fresh fruit Adjusted EBITDA decreased primarily due to lower pricing for bananas in North America as well as higher fruit costs in Europe, partially offset by lower shipping costs in Europe. In addition, fresh fruit earnings were impacted by provisions totaling $26 million recorded in the fourth quarter of 2012 in connection with the possible resolution of certain legal-related matters. Fresh vegetables Adjusted EBITDA was comparable. Higher earnings in the packaged salads and fresh berries businesses were partially offset by lower pricing experienced during the first half of 2012 across all major fresh-packed vegetable product lines. Packaged salads earnings increased primarily due to improved pricing. Fresh berries earnings increased as a result of the berry business acquisition, partially offset by higher growing costs.

Segment Information (the two lines of fresh produce business remaining with the new Dole)
    Fiscal Year

December 29, 2012

December 31, 2011
Revenues from external customers (in millions)
Fresh fruit $ 3,141.2 $ 3,757.0
Fresh vegetables 1,104.0 1,019.7
Corporate   1.5   1.7
$ 4,246.7 $ 4,778.4
    Fiscal Year


December 29, 2012

December 31, 2011
EBIT: (in millions)
Fresh fruit EBIT $ 103.5 $ 138.8
Fresh vegetables EBIT   24.8     31.4  
Total operating segments 128.3 170.2
Net unrealized gain (loss) on foreign denominated instruments (0.5 ) (1.7 )
Share-based compensation (7.5 ) (5.8 )
ITOCHU transaction related costs (48.4 ) -
Operating expenses   (47.7 )   (53.4 )
Corporate   (104.1 )   (60.9 )
Total EBIT before disc. ops. $ 24.2   $ 109.3  

2013 Guidance

“Fresh fruit performance in 2012 was below 2011, and we expect this trend to continue in 2013,” said Mr. Carter, who will be assuming the added role of President and COO in connection with the ITOCHU transaction. “We continue to see aggressive contract negotiations in the North American banana market, driving earnings in that market to lower levels. We expect fresh vegetables Adjusted EBITDA to improve in 2013, but not enough to offset the expected continued decline in the North America banana market. Overall, we expect 2013 Adjusted EBITDA for the new Dole to be at the low end of the guidance range we announced on January 2, 2013, assuming no major market changes.”

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