Dole Food Returns to Profit in 4th Quarter

Three months after announcing significant downsizing plans to cut costs, Dole Food Co. said it returned to profit in the fourth quarter amid improved results in its fresh fruit and processed food operations. The Westlake Village-based company reported operating earnings of $2.1 million, or 4 cents a share, a turnaround from a loss of $7.8 million, or 13 cents, a year earlier, and a penny better than analyst forecasts. Sales rose by 10% to $1.1 billion, while operating cash flow increased 30% to $55.7 million. Banana prices remained weak, but the volume of shipments grew, led by sales to Asia. The performance showed Dole appeared to regain its footing in the last quarter of 1999 after a disastrous year marked by costs related to Hurricane Mitch’s devastation in Central America, banana import limitations by the European Union and a worldwide glut in banana supplies. Chief Executive David Murdock said Dole expects “further improvements in earnings and cash flow in 2000 and beyond.” Dole shares rose $1, or 7%, to close at $15.06 on the New York Stock Exchange.