CINCINNATI – Dec. 14, 2006 – Chiquita Brands International, Inc. (NYSE: CQB) today provided an intraquarter update for the fourth quarter 2006, including Chiquita banana and Fresh Express value-added salad prices and volumes for October-November 2006 in its Banana and Fresh Cut segments, respectively.
Banana Segment
Year-over-Year Percentage Change 1 October-November 2006 vs. October-November 2005
1 These statistics may not be indicative of future results. 2 The 25 countries of the European Union, Switzerland, Norway and Iceland. 3 Prices on a U.S. dollar basis do not include the impact of hedging. 4 In this region, the company primarily operates through joint ventures, and most business is invoiced in U.S. dollars.
In the company’s Banana segment, North American pricing continued its positive trend, albeit at a more moderate year-over-year rate. Banana volume sold in the region was essentially flat, as the company recovered from weather-related disruptions that had impacted supply since late 2005.
As anticipated, banana prices in the company’s core European markets improved sequentially from the third quarter, as the negative impact from hot summer weather and excess supply subsided. However, pricing remained down year-over-year, primarily due to the continued impact of E.U. regulatory changes, which have resulted in an increase in industry volume and price competition. The company’s volume sold in its core European markets increased slightly, reflecting the company’s ability to maintain its position as the leading supplier in these markets.
Banana volume sold in the company’s trading markets, comprised of European and Mediterranean countries that do not belong to the European Union, rose to approximately 4.1 million boxes versus 2.4 million boxes in the year-ago two-month period. The company continued to sell excess bananas from Latin American producers into these markets; however, pricing has improved significantly, well above the depressed levels in the third quarter.
In Asia Pacific and Middle East, pricing improvement was driven primarily from Japan, as the company recovered from much lower pricing levels in that country in the year-ago period.
Fresh Cut Segment
1These statistics may not be indicative of future results.
In the Fresh Cut segment, total volume of retail value-added salads rose 5 percent in the two-month period, reflecting strong growth in blends and tenderleaf products. Since mid-September, the company’s Fresh Express operations have experienced lower sales and unforeseen costs due to consumer concerns regarding the safety of fresh spinach in the United States, despite the fact that no confirmed cased of consumer illness were linked by the U.S. Food and Drug Administration to Fresh Express products. However, the company continues to be the only major competitor in this category showing positive year-on-year volume growth, and Fresh Express volumes improved month-to-month.
About Chiquita Brands International, Inc.
With annual revenues of approximately $4.5 billion, Chiquita Brands International, Inc. (NYSE: CQB) is a leading international marketer and distributor of high-quality fresh and value-added food products – from energy-rich bananas and other fruits to nutritious blends of convenient green salads. The company’s products and services are designed to win the hearts and smiles of the world's consumers by helping them enjoy healthy fresh foods. The company markets its products under the Chiquita® and Fresh Express® premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide. For more information, please visit our web site at www.chiquita.com.
This press release contains certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Chiquita, including the impact of the 2006 conversion to a tariff-only banana import regime in the European Union; unusual weather conditions; industry and competitive conditions; financing; product recalls affecting the industry; the customary risks experienced by global food companies, such as the impact of product and commodity prices, food safety, currency exchange rate fluctuations, government regulations, labor relations, taxes, crop risks, political instability and terrorism; and the outcome of pending governmental investigations and claims involving the company.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the company undertakes no obligation to update any such statements. Additional information on factors that could influence Chiquita's financial results is included in its SEC filings, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
# # #
