Banana woes in
Europe plague Dole

The company says lower prices
abroad will cause the company
to miss earnings forecasts

Bloomberg News

WESTLAKE VILLAGE, Calif. -- Dole Food Co., the world's largest fresh fruit producer, warned second-quarter earnings will be "materially below" a year ago because of a drop in banana prices in Europe.

Profit from continuing operations will be in the range of 55 cents to 75 cents a share, the company said. Dole was expected to earn 99 cents a share in the second quarter, the average estimate of four analysts surveyed by First Call Corp. In the second quarter of 1998, the company had net income of $82.1 million, or $1.35 a share.

Dole said the low prices were caused by an unexpected increase in the number of banana-import licenses from the European Union, and the increase in shipments caused a banana glut in EU countries. In addition, demand for bananas was weak in Eastern Europe and Russia, the company said.

Cincinnati-based Chiquita Brands International Inc., another big banana producer, warned earlier this week that the lower European prices would similarly push its second-quarter profit below analysts' estimates.

Dole's shares, which were hurt by Chiquita's announcement on Tuesday, were down 19 cents at $30.94 at midday on the New York Stock Exchange.

Westlake Village, Calif.-based Dole, which was founded in Hawaii in the middle of the 19th century, still has substantial land and agricultural holdings in the state.