Sydney - Friday - August 18: (RWE Aust Business News) -...

Sydney - Friday - August 18: (RWE Aust Business News) - Chiquita
Brands South Pacific Ltd (ASX:CHQ) reported net profit of $3.38 million
for the year to June 30 2006, down 68 per cent on the $10.45m profit in
the prior year.
Revenue was up 13pc to $252.53m.
Earnings before interest, tax and significant items (EBIT) for
continuing operations were $12.1m, down 11pc on 2005.
An unfranked dividend of half a cent will be paid November 1 with
record date August 29. This brings dividends for the year to 1.5c.
Earnings per share was 2.29c against 7.22c previously.
The company said the trading performance for the first two
months of the 2006/07 financial year was ahead of the prior year.
The FY06 trading operations' sales were in line with 2005,
despite the devastating impact of Cyclone Larry on the banana crop.

Despite the setback of Cyclone Larry agribusiness was some 50pc
ahead of last year.
At the end of February, prior to the cyclone in March, the
trading operations were 81pc ahead of 2005 and, as such, the cyclone
significantly affected the results, given that the final four months of
the year were expected to also be ahead of the prior year.
Cyclone Larry destroyed the banana farms and the majority of
third party growers that supply Chiquita's trading business.
Up until then both the trading and banana businesses were well
ahead of last year's performance and expected results.
Chiquita said it was also addressing the trend in consumer buying
habits towards pre-packed mushrooms from the traditional bulk product and
has committed $11m on capital expenditure to upgrade the infrastructure
to accommodate this product mix.
This upgrade is expected to be completed by January 2007.
The blueberry operations at Corindi were affected by unfavourable
weather conditions with record rainfall during October and November
impacting on the ability to harvest.
On a full year basis the performance of both blueberries and
raspberries were below the prior year result.
However by focusing on minimising costs and maximising returns
the berry business achieved 75pc of its EBIT target.
Chiquita shares were steady at 74.5c.