Chiquita Q3 Loss Flat - Update

(RTTNews) - Chiquita Brands International Inc. (CQB) Thursday said its loss for the third quarter was flat with last year, hurt largely by higher banana costs and lower sales of salads and healthy snacks. Moving ahead, the company said it will focus now on closing its takeover by two Brazilian firms.

Charlotte, North Carolina-based Chiquita Brands third-quarter loss was $18 million or $0.38 per share, the same as last year.

Net sales for the quarter rose to $739 million from $723 million a year ago.

Banana comparable net sales increased 4 percent to $477 million primarily due to higher pricing and higher volumes in North America, while salads and healthy snacks sales dropped 2 percent to 234 million, due to lower volume of vegetable and healthy snacks sales to food-service customers.

CEO Ed Lonergan said, "The momentum generated by Chiquita's 'return to the core' strategy resulted in higher sales in our banana segment, and improved pricing in both bananas and salads & healthy snacks."

Cost of sales rose to $664 million from $645 million last year. The company said it experienced higher banana sourcing and transport costs in the quarter.

Moving ahead, Lonergan said "With the announced sale of Chiquita to the Cutrale and Safra groups, we are working to ensure an efficient closing and successful integration by the end of the year or early 2015."

In October end, Chiquita agreed to be taken private by Brazilian firms Cutrale Group and Safra Group for about $1.3 billion, after fighting for months to stave of the deal.

Since March, Chiquita Brands were trying to merge with Dublin, Ireland-based Fyffes Plc (FFY.L, FYFFF) in order to relocate to Ireland and enjoy the lower corporate tax benefits there. However, Chiquita's shareholders rejected the deal after the U.S. government made changes to tax rules. Following which, Chiquita agreed to a deal with Cutrale and Safra.

CQB is currently trading at $14.43, up $0.01 or 0.03%, on the NYSE.