WESTLAKE VILLAGE, Calif. >> Dole Food Co., the world's largest fruit and vegetable producer, said fourth-quarter profit fell 89 percent from a year earlier, when the company had a gain from selling a Honduran beverage business. Dole profit fell
89% in quarterBut earnings a year ago
included gains from selling
off a Honduran businessBy Courtney Schlisserman
Bloomberg News
Net income fell to $18.4 million, or 33 cents a share, from $173.5 million, or $3.10, a year ago, the company said in a statement. Excluding the gain in 2001, profit more than quadrupled from $4.1 million, said Dole, which last month agreed to be taken private by Chief Executive David Murdock.
Higher banana prices and sales in Asia helped boost revenue by 1.3 percent to $960 million. The cost of products sold declined 3.2 percent to $815.9 million, helped by the closure of six fresh-cut flower plants.
Murdock and his family agreed to buy the 76 percent of shares they don't already own for $2.5 billion, or $33.50 a share. Transaction expenses cost Dole $2.4 million in the quarter.
Excluding the costs from the Murdock transaction and a $5 million gain from taxes, profit was $15.8 million, or 29 cents a share. On that basis, which is not in accordance with generally accepted accounting principles, Dole beat the 27-cent average estimate of four analysts surveyed by Thomson First Call.
Dole expects to have 65 cents to 70 cents a share in profit from continuing operations in the first quarter and $2.83 to $2.93 a share for the year. U.S. Bancorp Piper Jaffray analyst Eric Larson forecast first-quarter earnings of $1.09 a share.
Dole, founded in Hawaii in 1851 but now with its corporate headquarters in Westlake Village, Calif., has divested most of its Hawaii production.
It grows pineapple on 4,000 acres in Wahiawa. Murdock is also the owner of Castle & Cooke Inc.
Shares of Dole closed up 20 cents at $32.55 in New York Stock Exchange composite trading.
Dole Food Co.