• November 2, 2010

Fresh Del Monte Produce Inc. saw diluted earnings per share decline to $0.24 in third-quarter 2010, from $0.45 in Q3 2009, the company reported.

Net income for the quarter was $14.5 million, compared with $28.6 million in Q3 2009, reflecting lower operating income and higher taxes.

Net sales grew to $793.1 million, a $26.9 million increase over Q3 2009, driven by increased banana volume in the company's North American and Middle East regions; higher volume and price increases in its gold pineapple product line and prepared-food business; and increased presence in new markets

However, gross profit declined to $52 million, versus $69 million in Q3 2009, due primarily to decreased profits in the banana business, the company reported.

Adverse weather conditions affected banana-production areas in Guatemala, driving up production costs, according to chairman/CEO Mohammad Abu-Ghazaleh. These costs were compounded by unfavorable exchange rates in several banana-producing countries and a difficult banana market in Europe, he reported.