Dole Reports Big Jump In Quarterly Profits

Dole Food Co. Inc’s (DOLE.N) fourth-quarter profit before taxes and interest jumped 49%, and the fruit and vegetable producer said it sold three manufacturing plants in Latin America to pay down debt.

Dole, which pre-announced its results, said gains during the quarter were offset by higher marketing expenses related to the national rollout of its new packaged salad items and lower profit from Asian fresh fruits.

The company’s newly launched bagged salads could boost the revenue and earnings going forward, said, Ken Goldman, JP Morgan analyst.
For the quarter ended Jan. 2, Dole’s earnings before interest and taxes were $70 million, compared with $47 million a year earlier, as it got a boost from foreign currency exchange and fuel hedging gains.

Revenue slumped 7% to $1.53 billion. The Westlake, CA-based company, which went public in October last year, said it had amended certain senior secured credit facilities, and now expects to have no debt maturities till 2013.

Dole also said it reduced its total debt in 2009 by 30% to $1.48 billion through asset sales and IPO proceeds.
The company had sold 35.7 million shares in its IPO, raising $446.4 million.

Source: Wire Reports