Dole Food Earnings Expected Below Estimates

Dole Food in Westlake Village said that although its fourth-quarter earnings are expected to be below estimates, it is encouraged by the significant year-over-year fourth-quarter improvement in its banana activities and the ongoing implementation of cost-reduction programs.

Dole said fourth-quarter results will be below expectations as a result of continued lower pricing in the European Union due to banana oversupply in that market and the strengthening of the U.S. dollar in relation to major European currencies.

Further consolidation costs in the fresh-cut flowers division, as well as lower-than-expected commodity lettuce prices in North America, will also contribute to lower earnings. However, Dole said earnings in its other core businesses are in line with or better than previous estimates.

The company expects earnings per share from continuing operations to be between 2 cents and 4 cents for the quarter, compared with a loss of 13 cents per share in the fourth quarter of 1998.

Dole will be taking a special charge in the fourth quarter in connection with its downsizing and consolidation programs.

“While we are disappointed with this quarter’s results, we are encouraged by the upward trend in quarterly earnings from our worldwide banana operations as well as the strength of our other core businesses,” said David H. Murdock, chairman and chief executive. “We are confident that the cost-cutting measures begun in 1999 and the expected return to normal operations in the Honduran and North American citrus businesses will provide significant improvement to Dole’s results next year.”

Dole, which has revenues of approximately $5 billion, is the world’s largest producer of fresh fruit and vegetables, and it markets a growing line of packaged foods and fresh flowers.