Dole Food Company Inc. Announces California Citrus Freeze Damage.WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Jan. 4, 1999--Dole Food Company Inc. (NYSE NYSE See: New York Stock Exchange :DOL DOL - Display Oriented Language. Subsystem of DOCUS. Sammet 1969, p.678. ) Monday announced that it expects to have a special charge in the fourth quarter of approximately $20 million in its Citrus division. From Dec. 21 to Dec. 24, 1998, California's citrus industry sustained major crop losses from freezing temperatures. The abnormally cold temperatures destroyed or severely damaged navel orange, valencia orange, lemon, and other citrus crops in Kern, Tulare, and Fresno counties. The company has ownership interests in approximately 6,500 acres of citrus in the areas affected by the freeze. A preliminary survey indicates substantial damage to the company's navel and valencia oranges, lemons, grapefruits, and minneolas in the San Joaquin Valley Noun 1. San Joaquin Valley - a vast valley in central California known for its rich farmland Calif., California, Golden State, CA - a state in the western United States on the Pacific; the 3rd largest state; known for earthquakes . The 1998 charge consists primarily of crop inventory losses and reductions in grower receivable recovery estimates. In addition, the company operates three citrus packinghouses in the San Joaquin Valley, which will be closed most of 1999. The company currently estimates that 1999 operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before will be negatively impacted by approximately $10 million to $15 million. The company had previously announced that it expected to take a charge of approximately $100 million in the fourth quarter due to 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 related damages. Combining the losses of both disasters would now increase that charge to approximately $120 million. Dole Food Company Dole Food Company, Inc. is an American-based agricultural multinational corporation headquartered in Westlake Village, California and is the leading grower and packer of such food items as bananas, pineapples (fresh and packaged), grapes, strawberries, and other fresh and frozen , with 1997 revenues of $4.3 billion, is the world's largest producer and marketer of high-quality fresh fruit and vegetables, and markets a growing line of packaged foods and fresh flowers. This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause the company's actual results to differ materially from those expressed or implied herein include weather-related phenomena; market responses to industry volume pressures; economic crises in developing countries; quotas, tariffs and other governmental actions; changes in currency exchange rates; product supply and pricing; and computer conversion and Year 2000 issues. Further information on the factors that could affect Dole's financial results is included in its SEC filings, including its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . |
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