DOLE FOOD COMPANY, INC. ANNOUNCES ESTIMATED SECOND QUARTER 2001 RESULTS
WESTLAKE VILLAGE, California - June 18, 2001
Dole Food Company, Inc. (NYSE: DOL) Monday announced that its second-quarter net income will be in the range of $34 million to $37 million, or $0.61 to $0.66 per share. Estimated net income for the second quarter of 2001 includes an $8 million pre-tax gain related to the sale of investments and approximately $30 million of pre-tax expense primarily related to asset write-downs resulting from business reconfiguration programs undertaken in the first part of 2001. The $30 million of pre-tax expense is primarily for the shutdown and related asset sales of the company's California deciduous and Northwest apples businesses. Excluding these items, net income from ongoing operations will be in the range of $49 million to $52 million, or $0.88 to $0.93 per share, compared with net income of $45.1 million, or $0.81 per share, for the second quarter of 2000, all from ongoing operations.
EBIT in the company's fresh fruit segment is expected to increase due to improved earnings in its banana and fresh pineapple operations largely as a result of significant cost-cutting activities, increased volumes and pricing in North America and favorable banana pricing in Europe. Earnings in the company's fresh vegetables segment are anticipated to be lower due to more normalized commodity vegetable pricing in North America partially offset by continued growth in the packaged salads business. Earnings in the company's processed foods segment are also anticipated to be lower mainly due to costs associated with the launch of new FRUIT-N-GEL BOWLS during the quarter.
Lawrence A. Kern, president and chief operating officer, stated: "We are pleased with the positive impact our cost-cutting initiatives are having in our fresh fruit segment, particularly our banana business. While this business and our other activities continue to face earnings pressure from high fuel prices and weak currency exchange rates in both Europe and Asia, we feel encouraged by the expected year-over-year improvement."
Dole Food Company, Inc., with 2000 revenues of $4.8 billion, is the world's largest producer and marketer of high-quality fresh fruit, fresh vegetables and fresh-cut flowers, and markets a growing line of packaged foods.
This release contains forward-looking statements that involve a number of risks and uncertainties. Forward looking statements, which are based on management's current expectations, are generally identifiable by the use of terms such as "will," "expects," "anticpates" and similar expressions. The potential risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein include weather-related phenomena; market responses to industry volume pressures; product and raw materials supplies and pricing; electrical power supply and pricing; changes in interest and currency exchange rates; economic crises in developing countries; quotas, tariffs and other governmental actions; and the ability of the company and its European customers and suppliers to complete euro conversion efforts. Further information on the factors that could affect Dole's financial results is included in its SEC filings, including its Annual Report on Form 10-K.