The Dole Food Co. Inc. is reviewing its business operations that could lead to a spin off or other transaction of its divisions, the company announced.
The board of directors of the Westlake Village-based food grower and distributor is working with financial advisors to evaluate prospects and options pertaining to select businesses of the company.
“We are committed to enhancing shareholder value and this review is a company priority,” said Dole President and CEO David A. DeLorenzo in a prepared statement.
Dole will disclose developments from the revue when it determines it is appropriate and required, the company said.
Dole made this announcement when releasing its first quarter earnings.
The company reported revenue of $1.6 billion for the quarter ending March 24. That is a decrease of 3.5 percent from the $1.7 billion in revenue from the same period in 2011.
Quarterly earnings were affected by low prices in commodity vegetables, DeLorenzo said.
“Our packaged salads and fresh berries businesses had very strong results in the quarter, however, these gains were offset by the weaker performance in commodity vegetables,” DeLorenzo said in a prepared statement. “As anticipated, banana earnings were weaker due to lower pricing in North America and Europe, as well as higher fruit costs from Latin America, which more than offset a strong performance in Asia bananas.”
Mark R. Madler