Los Angeles, August 04 2006 - Banana marketer Chiquita Brands Inc. Thursday reported a 64 percent drop in quarterly profit due to higher import tariffs in Europe, but results were ahead of Wall Street estimates and its shares rose 9 percent.
The company, based in Cincinnati, Ohio, said profit was $23 million, or 54 cents a share, in the second quarter, compared with $64 million, or $1.36 a share, a year earlier.
Two Wall Street analysts, on average, had been expecting earnings of 49 cents a share, according to Reuters Estimates.
Net sales rose 21 percent to $1.2 billion, in line with analysts' estimates. The rise was mainly due to the recent acquisition of the Fresh Express packaged salads and fresh-cut fruit business. Higher banana prices in North America also helped boost sales, Chiquita said.
Chiquita shares were at $14.60 in after-hours trade, up 9 percent from their New York Stock Exchange close of $13.40.