DOLE SHARES DIP IN 4TH QUARTER.Byline: Gregory J. Wilcox Staff Writer With Europeans curbing their appetite for bananas, Dole Food Co. today is scheduled to report that third-quarter earnings have slipped dramatically from year-ago levels. The Westlake Village-based grower and marketer of fruits and flowers is expected to report a loss of 3 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the quarter, said a poll of four analysts by First Call. Dole earned 26 cents a share in the 1998 third quarter. The company gave Wall Street ample warning of the disappointing results. Initially, Dole expected to earn 13 cents per share for the quarter. But on Sept. 20, the company advised investors that earnings would likely be well below that level. Company chairman David Murdock said the company would just break even at best for the quarter because of price weaknesses from an oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies of the fruit. That situation resulted from an increased allocation of banana licenses into the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community for the third quarter and continued softness in demand from Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and Russia. On another front, lower-than-expected prices in the fresh-cut flowers division and the negative effects from last year's citrus freeze also contributed to lower earnings. Also the company continues to feel the impact of costs associated with the aftermath of Hurricane Mitch Hurricane Mitch was one of the deadliest and most powerful hurricanes on record in the Atlantic basin, with maximum sustained winds of 180 mph (290 km/h). The storm was the thirteenth tropical storm, ninth hurricane, and third major hurricane of the 1998 Atlantic . As these factors abate abate v. to do away with a problem, such as a public or private nuisance or some structure built contrary to public policy. This can include dikes which illegally direct water onto a neighbors property, high volume noise from a rock band or a factory, an improvement , the company expects its financial picture to improve. Dole had 1998 revenues of $4.4 billion. It is the world's largest producer and marketer of high-quality fresh fruit and vegetables, and markets a line of packaged foods and fresh flowers. |
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