Banana Crop, Russia Tied to Dole Profit Drop

Dole Food Co. said its fiscal third-quarter earnings fell 36% as its banana business was hit by higher costs from El Nino storms and lower prices from Russia’s economic collapse. Dole’s net income fell to $15.6 million, or 26 cents a share, matching analyst estimates that were lowered last month after Dole warned that its results would fall short of forecasts by as much as 35%. Revenue rose 2.6% to $1.21 billion. The results did not take into account the devastating effects of Hurricane Mitch, which hit Central America last week, after the end of the third quarter. The Westlake Village-based company said earlier this week that it expects to take fourth-quarter charges of about $50 million to $70 million for damage caused by the hurricane. Dole has about 40,000 acres of bananas in Honduras, Guatemala and Nicaragua, where it also produces sugar and palm oil. Dole is the world’s largest producer and marketer of fresh fruit and vegetables. Dole shares rose $1.88 to close at $34.06 on the NYSE.