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Dole hurt by Dole Food Co. shares dropped to a 10-year low early today after the company warned that the weak euro and high oil prices will result in an operating loss for the third quarter.
weak euro, high
oil prices
The company warns of
a third-quarter lossFrom staff and wire reports
The shares sank as low as $13.13 on the New York Stock Exchange, down $1.69, or 11.4 percent, in early trading.
But by the close of trading, the stock had rebounded to $14.63, down 19 cents from yesterday's close.
Dole issued a statement early today saying it expects to report a loss from ongoing operations of between 2 cents and 8 cents a share for the three months through Sept. 30. That would compare with the operating loss of 3 cents a share that Dole reported for the third quarter of 1999.
Analysts had expected Dole to post an operating profit of 13 cents a share, according to market research firm First Call/Thomson Financial.
The company, which normally reports its third-quarter results in the first week in November, did not say what it expects its net income will be.
Dole said there will be a one-time gain of $8 million to $10 million from selling citrus operations in California and Arizona and some extra income from an insurance settlement from hurricane damage to its Central American operations.
But the company said that will be partly offset from pre-tax charges from scaling down its banana business.
U.S. fruit companies' shares have plunged in the past year, in part because of a banana trade war in Europe. Dole shares are about 25 percent lower than they were at this time last year.
Dole was founded in Hawaii's sugar and pineapple business in the mid-1800s and grew to become the world's biggest producer and shipper of fresh fruits and vegetables. Now based in Westlake Village, Calif., the company still has agricultural operations in Hawaii.
It's chairman and CEO is David H. Murdock, who recently completed a buyout of major Hawaii landowner Castle & Cooke Inc.
Star-Bulletin reporter Russ Lynch, Reuters and Bloomberg News contributed to this report.