Fresh Del Monte Produce Inc. today reported financial results for the quarter ended September 27, 2013.
The Company reported earnings per diluted share of $0.11 for the third quarter of 2013, compared with earnings per diluted share of $0.40 in the third quarter of 2012. Excluding asset impairment and other charges, earnings per diluted share were $0.09 in the third quarter of 2013, compared with $0.45 in the third quarter of 2012.
"We are pleased to report that our strong top line growth and forward momentum continued in the third quarter of 2013, in what is traditionally our most challenging quarter," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. "During the quarter, we made impressive strides in increasing our global customer relationships. We experienced growth in all major markets as we strove to capitalize on our position as a leader in the global produce industry. However, our progress was limited by an industry-wide oversupply of bananas, increases in logistic and fruit costs, as well as unfavorable year-over-year exchange rates. We remain committed to our strategy of extending our reach into value-added products and distribution channels that bring our convenient and healthy products closer to consumers and seeking attractive opportunities in emerging markets that we view as engines of growth. We are well positioned and our focus remains on steady growth and profitability."
Net sales for the third quarter of 2013 were $861.1 million, compared with $788.8 million in the prior year period. The increase in net sales for the quarter was the result of increased selling prices in the Company's banana and other fresh produce business segments and higher sales volume in all of the Company's business segments, partially offset by lower net sales in the Company's prepared food business segment and unfavorable exchange rates.
Gross profit for the third quarter of 2013 was $53.0 million, compared with $74.4 million in the third quarter of 2012, excluding other charges, gross profit was $75.2 million in the third quarter of 2012. Gross profit for the quarter was negatively impacted by higher costs and unfavorable foreign exchange rates.
Operating income for the third quarter of 2013 was $7.4 million, compared with $28.2 million in the prior year period. Excluding asset impairment and other charges, the Company had operating income of $6.5 million in the third quarter of 2013, compared with operating income of $31.1 million in the third quarter of 2012. The decrease in operating income was primarily due to lower gross profit.
Net income for the third quarter of 2013 was $6.4 million, compared with $23.5 million in the third quarter of 2012. Excluding asset impairment and other charges, the Company had net income of $5.5 million in the third quarter of 2013, compared with net income of $26.4 million in the third quarter of 2012.