After selling off a large portion of its overseas packaged food and fresh produce business, Dole Food Co. reported sharply lower revenue and earnings in its fiscal fourth quarter.
The Westlake Village produce company lost $88 million (-99 cents a share) in the quarter ended Dec. 29, compared to net income of $6 million (6 cents) for the same period a year earlier.
Revenue from continuing operations was down 8 percent to $888 million.
During the quarter, Dole recorded the $1.7 billion sale of its worldwide packaged foods business and its Asian fresh fruits and vegetable business to Itochu Corp. of Tokyo.
Analyst had forecast a loss of 2 cents a share and revenue of $1.3 billion not accounting for the sale, according to Thomson Financial Network.
“The combined revenue of Dole’s discontinued operations being sold represented approximately 38 percent of Dole’s revenues, at $2.6 billion in 2012,” said C. Michael Carter, Dole’s President and Chief Operating Officer, in a statement.
For the full year, income from continuing operations was $1 million, compared to $102 million ($1.15 a share) in 2011. Revenue fell 11 percent to $4.2 billion.
Also leading to the decline in revenue, was the divestitures of Dole’s fresh fruit subsidiaries in Germany and Spain, which accounted for $539 million of the lost annual revenue.
The earnings were released after the markets closed.
Dole had gained 7 cents, or less than 1 percent, to close at $11.73 on the New York Stock Exchange.