Dole’s Earnings Slip on Banana Oversupply

Dole Food Co. saw its third-quarter earnings tumble 75% as a result of an oversupply of bananas and continued weakness in the fresh vegetable market.

The Westlake Village food and real estate concern had net income of $1.29 million in the quarter that ended Oct. 8, down from its $5.1-million profit a year earlier. Its quarterly revenue increased 8%, to $1.08 billion from $1.01 billion.

In the first nine months of the year, Dole earned $66.7 million, a 32% decline from its $98-million profit in the same period of 1993. Its nine-month revenue was $2.89 billion, up 10% from $2.64 billion.

Dole Chairman and Chief Executive David Murdock said the company is evaluating its fresh vegetable business, particularly lettuce, because of the weak market conditions in North America.