Dole Foods Reports Wider-Than-Expected Loss

Dole Food (DOL Quote) lost considerably more money in the fourth quarter than analysts were expecting, as the strong dollar abroad, high fuel prices and competitive pricing pressures, especially in the banana business, conspired to dampen the bottom line.

The fresh fruit company said it lost $7.4 million, or 13 cents a share. Dole earned $2.1 million, or 4 cents a share, in the year-ago period. Revenue for the quarter totaled $1.06 billion, down from $1.08 billion in the year-ago period.

Two analysts surveyed by First Call/Thomson Financial expected Dole to lose 2 cents a share, but the company had forecast a loss of 4 cents to 14 cents.

Dole, which is based in Westlake Village, Calif., said banana prices aren't likely to improve much in 2001, but added that cost-cutting measures would offset losses. The company expects profits in other areas to improve, such as in the processed foods and fresh-cut salads businesses and in the beverage division.

In recent New York Stock Exchange trading, Dole lost 24 cents, or 1.3%, to $18.01.