Castle & Cooke Back in Black for 3rd Quarter

Castle & Cooke announced Wednesday that it returned to profitability in the third quarter of fiscal 1985 due to improved results for fresh fruit, processed pineapple and gains on asset sales.

Cost-reduction plans initiated in mid-December also contributed to the improvement.

For the 12-week quarter ended March 23, net income from operations was $9 million and net gains from asset sales were $6.3 million, bringing the total net income to $15.3 million, compared to $5.6 million a year earlier.

The previous year’s results are net of an $843,000 loss from discontinued operations. Interest expense for the third quarter was $17 million, versus $9 million for the same period last year. Higher debt levels and interest rates accounted for the increase.

Revenue for the quarter was $386.1 million, up 12.5% from the $343.2 million for the same period a year earlier. For the year to date, the net loss was $48.6 million, versus net income of $6 million a year ago.