Charlotte, N.C.
By ANUK Staff
1.29.13
Substantial operating losses are in store for the fourth quarter of 2012, Chiquita predicts.
The company announced fourth-quarter and full-year reports for 2012 and expects an operating loss from $188 million to $233 million for the fourth quarter 2012, up from $12 million for fourth quarter 2011.
Fourth quarter 2012 net sales increased from $722 million in 2011 to $738 million. Compared to the fourth quarter of 2011, stronger banana pricing and logistical savings partially offset lower salad results, lower average European currency exchange rates and a number of unusual cost items in the fourth quarter of 2012, and the net results was in line with the company's previous expectations for the quarter.
For the full year 2012, net sales were approximately $3.1 billion, the same figure as 2011. Chiquita officials predict their final numbers will show operating losses between $236 million and $281 million, compared with an operating cost of $34 million in 2011.
The company has implemented strategic initiatives to cut costs. The measures were substantially completed in the fourth quarter of 2012 and are expected to drive at least $60 million in annual savings beginning in 2013, including $25 million for completed headcount reductions and approximately $35 million for value chain cost reductions.
Companies in this Story
Chiquita
Chiquita is a leading global company with 20,000 employees across 70 countries. We are passionate about our nutritious,…
