Dole’s Bananas, Salads Lead to Fruitful Quarter

Dole Food Co. said first-quarter earnings surged 40% because of strong sales of bananas and packaged salads.

The Westlake Village-based producer of fresh fruit and vegetables said net income rose to $42 million, or 70 cents a share, from $30 million, or 50 cents, a year earlier.

Revenue rose 19% to $964.9 million from $814.4 million.

Dole attributed the rise in earnings to improved sales and higher prices for its bananas in North America and Asia, plus strong sales of its packaged salads.

It said the higher sales helped offset the effect of a strong dollar against the Japanese yen and European currencies. At the end of this year’s first quarter, $1 was equal to 123.79 yen, 19% more than a year earlier.

Goldman, Sachs & Co. analyst Nomi Ghez estimates that the stronger dollar would have cut Dole’s earnings by 23 to 25 cents a share if the company hadn’t sold more fruit at higher prices.

“They overcame a hurdle that could’ve easily reduced their earnings,” she said.

Dole spokesman Thomas Pernice said the company’s shipments of bananas to China, which began in the second half of 1996, have slowed because of smaller supply and higher prices.