KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comChiquita Brands swings to profit in 3Q

Chiquita Brands swings to profit in 3Q

CINCINNATI (AP) - Chiquita Brands International Inc. said Tuesday it earned a profit in the third quarter, compared with a year-ago loss, as it trimmed costs and better managed its pricing strategy to deal with seasonal shifts.

The Cincinnati-based banana and produce seller earned $5 million, or 11 cents per share, in the quarter that ended Sept. 30. That compares with a loss of $7 million, or 16 cents per share, a year earlier.

Chiquita said its results were hurt by restructuring charges, as it moves its European headquarters to Switzerland from Belgium for tax advantages, and by non-cash interest expenses.

But adjusted profit of 20 cents per share beat a prediction of analysts polled by Thomson Reuters that the company would lose 16 cents per share.

Revenue fell 5 percent to $801 million from $840 million, mainly as the company got rid of unprofitable foodservice contracts in its salad division, leading to lower sales volumes. But results still topped analysts' $774 million estimate.

The company also reiterated that fiscal 2009 adjusted profit will be significantly better than the $1.12 per share reported in 2008. Analysts expect per-share profit of $2.17 in 2009, on average.

"We are encouraged by our strong momentum and are confident that, absent any major unforeseen events, we will achieve a year-over-year improvement in comparable second-half results of at least as much as we achieved in the first half," CEO Fernando Aguirre said in a statement.

Chiquita added that fourth-quarter results aren't expected to top third-quarter levels due to seasonally lower consumption of salads and planned investments in consumer marketing.

Shares fell 20 cents to finish at $14.75 on Tuesday, but jumped 85 cents, or 5.8 percent, to $15.60 in after-hours trading.

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