Chiquita Provides European Price & Volume Update for Q1 2010

CINCINNATI, March 30  /PRNewswire-FirstCall/ -- Chiquita Brands International, Inc. (NYSE: CQB) today provided an update on banana pricing and volume for its core European markets during the first quarter 2010.  The company is providing this information on a one-time basis in response to recent unusual industry market conditions that have been experienced and reported industry wide. Additionally, the company reaffirmed its full-year 2010 target for comparable income of $110 to $120 million.

For the first quarter 2010, European banana pricing, which is set weekly, has not followed the normal pace of seasonal price improvements and are approximately 11 percent lower than the first quarter of 2009. Pricing did not improve sequentially during the quarter at the same rate as in recent years due to soft demand throughout the company's core European markets. As previously announced, banana pricing in the company's core European markets in January was 2 percent lower compared to the same period in 2009 on a local currency basis. However, local currency prices in February were lower by 8 percent than 2009 levels and an estimated 18 percent lower in March.  Volume was lower by approximately 13 percent during the quarter.

"As widely reported in recent weeks, European banana pricing was negatively impacted by the harshest winter weather in 30 years and depressed economic conditions which have affected commerce all over Europe, particularly in the south," said Fernando Aguirre, chairman and chief executive officer.  "We expect banana pricing to strengthen in comparison to 2009 levels as the year progresses, as tightening industry supplies in Latin America and Asia begin to restore the balance of supply and demand."

Aguirre added, "Very importantly, we continue to be confident of achieving our full-year target of $110 to $120 million of comparable income, even as our first quarter results will be substantially lower than 2009. As we previously reported, we expect that the quarterly flow of earnings will differ from 2009, with first half results lower than the record levels achieved last year. We expect that second half results will improve versus 2009 as we have already begun to take aggressive pricing actions, are executing significant cost improvements throughout our supply chain and will realize profit improvements from our Just Fruit in a Bottle joint venture. Taken together, this should allow us to overcome these early headwinds in our European business.

"We are very excited about our newly announced partnership with Danone that will enable us to expand and drive profitability of Just Fruit in a Bottle, our best innovation in Europe. Revitalizing our European business to return its profitability to previous levels is one of our most important business priorities in 2010 and we will provide additional updates on our progress on our first quarter conference call."

About Chiquita Brands International, Inc.

Chiquita Brands International, Inc. is a leading international marketer and distributor of high-quality fresh and value-added food products – from energy-rich bananas and other fruits to nutritious blends of convenient green salads.  The company markets its healthy, fresh products under the Chiquita® and Fresh Express® premium brands and other related trademarks.  With annual revenues of $3.5 billion, Chiquita employs approximately 21,000 people and has operations in nearly 80 countries worldwide.  For more information, please visit www.chiquitabrands.com.

SOURCE Chiquita Brands International, Inc.