Chiquita Sees Big Loss, Will Suspend Dividend

Chiquita Brands International Inc., the world’s top banana producer, said harsh industry conditions will lead to a much steeper fourth-quarter loss than Wall Street had expected. Chiquita said it expects a fourth-quarter loss of $72 million to $82 million, or $1.15 to $1.30 per share, hurt by lower pricing in Europe and the recent strength of the dollar against major European currencies. Wall Street had been expecting Chiquita to lose 45 cents per share in the fourth quarter, according to market research firm First Call/Thomson Financial. In the same year-earlier period, the company lost $102 million, or $1.62 per share, including losses of $74 million, or $1.13 per share, from Hurricane Mitch, which destroyed much of Chiquita’s Central American banana plantations. The company, whose Chiquita Processed Foods unit also is the No. 1 U.S. private-label vegetable canner, also said it will suspend paying a common stock dividend next year until industry conditions improve. Chiquita shares, which have suffered a long, steady decline, closed down 63 cents at $3.44 on the NYSE. The stock is about 67% off its 12-month high of $12.