Dole Food Posts 76% Drop in 3rd-Quarter Net Income

Westlake Village-based Dole Food Co. posted a 76% drop in its third-quarter net income, to $5.1 million, despite a 4% revenue increase to $1 billion.

A year earlier, Dole earned $21.3 million on revenue of $957 million.

Dole attributed the profit decline to a $2.5-million non-cash charge for deferred tax liability, unstable banana markets and lower prices for fresh and processed pineapple and beverages.

David H. Murdock, Dole chairman, said the company has been hurt by uncertainty in the world’s banana markets, “due in part to the new regulations of the European Community, and the effects of the worldwide economic recession.”

For the nine months, Dole’s net income more than doubled, to $98 million from $38.6 million a year earlier. Profit in the latest period included a pretax gain of $31 million related to Dole’s sale of about 18% of the common stock of Castle & Cooke Homes in this year’s first quarter. Dole still owns 82% of Castle and Cooke.

Dole’s revenue in the first nine months of 1993 was $2.6 billion, essentially unchanged from a year ago.

Dole has interests primarily in food production and distribution, commercial and industrial real estate development and resorts.