CINCINNATI – Feb. 22, 2006 – Chiquita Brands International, Inc. (NYSE: CQB) today reported a fourth quarter 2005 net loss of $19 million, or ($0.45) per diluted share. The quarterly result includes $23 million ($0.55 per share) of costs from previously announced flooding in Honduras caused by Tropical Storm Gamma in November and the consolidation of fresh-cut fruit facilities in the Midwestern United States. The company reported net income of $25 million, or $0.61 per diluted share, in the same period a year ago.
Net income for the full-year 2005 was $131 million, or $2.92 per diluted share, including the items mentioned above. The company reported net income of $55 million, or $1.33 per diluted share, for the full-year 2004, which included expenses of $19 million ($0.47 per share) that primarily represented the premium to refinance the company’s 10.56% senior notes and $9 million ($0.22 per share) relating to restructuring at Atlanta AG and to severance.
"We had a terrific year in 2005," said Fernando Aguirre, chairman and chief executive officer. "In fact, we realized the best annual financial results in more than a decade in spite of fourth quarter challenges of flooding in Honduras, the impact of a lower year-over-year euro-dollar exchange rate and continuing high costs for fuel and ship charters."
Aguirre continued, "The European Commission’s decision to more than double its tariff on Latin American banana imports on Jan. 1, 2006, will result in higher costs and market uncertainty. However, we are committed to overcoming these challenges and winning in the European market in the long-term with our clear brand leadership and excellent customer relationships. During the fourth quarter, we invested an additional $20 million in consumer marketing and innovation spending in Europe to reinforce Chiquita’s brand premium in advance of the tariff change. Consumers can continue to expect Chiquita to offer better bananas, and our retail partners can continue to count on us to deliver consistently high quality products, superior service and innovation."