Produce giant Chiquita Brands International has lowered its forecast for annual profits due to a “sustained reduction” in European exchange rates.

Chiquita yesterday (29 July) set its target for comparable income at US$80-90m, down from the $110-120m it put in place in April.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

“We believe our diversification and profitable growth strategy will result in strong profitability for the full year,” chairman and CEO Fernando Aguirre said. “However, as we previously noted, a sustained, significant reduction in European exchange rates was not factored into our prior expectations.”

Nevertheless, Aguirre added: “Even at the lower income estimate, 2010 will be one of our most profitable years in the last decade, despite the weak economic environment.”

Aguirre’s comments came as Chiquita reported second-quarter income from continuing operations of $95m, up from the $89m booked in the same period last year.

However, the result was helped by Chiquita’s sales of a 51% stake in its Just Fruit in a Bottle beverage business to Danone in May.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

On a comparable basis, Chiquita’s second quarter income from continuing operations stood at $64m.

Net sales fell 4% during the quarter to $916m due to lower salad volumes in North America and lower banana prices in Europe.

Aguirre said he had seen progress in Europe. “As we expected, we regained profitability in Europe during the second quarter following the unusual weakness of the first quarter. Revitalising Europe is our most important priority and we made solid progress executing a business improvement plan that includes improving pricing, capturing significant cost improvements and increasing distribution, as we leverage the strengths of our branded business.”