Dive Brief:
- Chiquita International reported net income of $18 million for the second quarter, a drop of 42% from a year earlier, but better than the $25 million loss the banana shipper experienced in Q1.
- Chiquita put part of the blame on poor weather in Central America, which drove up the costs of bananas, even as sales of the fruit rose 3%.
- Sales of the company's packaged foods, including salad brand Fresh Express, dropped 4%.
Dive Insight:
Chiquita's disappointing results come as the company prepares to merge with Ireland's Fyffes to create the world's largest banana company. Results in the second quarter included some $3 million in charges related to that deal. There will be more such expenses in the present quarter as the merger of the giants nears completion.
Meanwhile, the smaller players in the banana game seem to be doing pretty well.