DOLE EARNINGS BEAT ESTIMATES.Byline: Deborah Adamson Daily News Staff Writer Dole Food Co. beat analysts' earnings estimates for the second quarter, helped by adverse weather conditions that trimmed back banana banana, name for several species of the genus Musa and for the fruits these produce. The banana plant—one of the largest herbaceous plants—is said to be native to tropical Asia, but is now cultivated throughout the tropics. supplies and strengthened prices worldwide. The food and flower producer reported a $1.35 earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, outpacing the $1.31 consensus on Wall Street. Dole managed to raise net income by 17 percent to $82.1 million for the quarter on the back of stronger banana prices, despite weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. currencies that trimmed
earnings from overseas business.
Dole shares rose $1.5625 to $52.25 on trading of 268,200 shares, nearly twice the average volume. ``Banana pricing improved in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and (sales) volume and prices rose in Europe,'' said Dole spokesman Thomas Pernice. ``We're happy with the second quarter.'' Dole reported revenues of $1.2 billion for the quarter, a 5 percent increase from 1997. Net income of $82.1 million ($1.35) compares with earnings of $70.4 million ($1.17) in the like period a year ago. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses rose 13 percent to $141.6 million. Sales and profits rose as well in its fresh vegetables, fresh fruit and packaged food divisions. Dole also declared a 10-cent quarterly dividend payable on Dec. 10 to shareholders of record as of Nov. 19. The second quarter reversed a negative trend in the first quarter, Pernice said, when good weather conditions and early harvesting led to a bumper banana crop from Ecuador and Colombia that drove down prices and hurt Dole's earnings and stock price. But this time, heavy rains in Ecuador and a drought in Colombia crunched supply, giving Dole an unusually strong second quarter over the first quarter. Banana sales made up 45 percent of second quarter's sales. While a stronger dollar diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. earnings from countries with weakened currencies such as Japan, it was somewhat offset by a market share gain of 16 to 19 percent in Europe. During the period, Dole also purchased the Sunburst and Floramerica flower companies for an undisclosed amount. The new subsidiaries are expected to add $100 million in revenue a year to Dole, although it won't be counted as such for 12 to 18 months, Pernice said. ``The company is looking at the business as a new avenue of growth,'' said Robert Izmirlian, an analyst at Standard & Poor's Equity Group in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Dole's existing relationships with major supermarket chains will make it easy for the company to market its own line of fresh cut flowers flowers cut from the stalk, as for making a bouquet. See also: Flower , he said. By distributing the goods more efficiently and cutting out some middlemen along the way, Dole stands to strengthen the usual wholesaler's price markup (text) markup - In computerised document preparation, a method of adding information to the text indicating the logical components of a document, or instructions for layout of the text on the page or other information which can be interpreted by some automatic system. from 12 percent to 20 percent, Izmirlian said. He has a ``hold'' recommendation on the company. However, he expects the stock to strengthen a little in six months to the mid-50s range. |
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