Chiquita Brands International, Inc. today released financial and operating results for the fourth quarter and full-year 2007.

Fourth quarter net sales increased 6 percent year-over-year to $1.2 billion, and the company reported a net loss of $26 million, or ($0.67) per diluted share, including a charge of $26 million related to the company's previously announced restructuring plan. In the year-ago period, the company reported a net loss of $42 million, or ($0.98) per diluted share, including a $25 million accrual related to the settlement of a U.S. Department of Justice investigation. The company's fourth quarter operating loss of $11 million was on the favorable end of the estimated operating loss range of $10-20 million provided in the company's preliminary selected results release on Jan. 28, 2008.

For the full year, net sales increased by 4 percent to $4.7 billion, and the company reported a net loss of $49 million, or ($1.22) per diluted share, compared to a net loss of $96 million, or ($2.27) per diluted share, in 2006.

"Our results reflect the proactive steps we took throughout the year to position us to transform and grow our business," said Fernando Aguirre, chairman and chief executive officer. "We have continued to focus on pricing in bananas and recovery in value-added salads to help offset persistent external cost challenges."

Aguirre added, "In 2008, we will be focused on maintaining our premium brands, improving North American profitability and completing the restructuring we implemented in October. We also will invest in the development of new value-added products to extend our brands, expand consumption and drive growth in higher-margin distribution channels and profitable geographies. We believe that these strategies will help us to achieve our vision of becoming the global leader in healthy, fresh and convenient foods."

Outlook

The company expects improved year-on-year performance in sales and operating income in 2008, primarily due to contract and market price increases, including fuel-related surcharges, and the benefits of its business restructuring. The following chart summarizes management's estimates of the impact of certain items on the company's results for 2008.

Business restructuring

The restructuring plan, announced in October 2007, is on track to generate new, sustainable cost savings of approximately $60-80 million this year. The savings are being generated primarily from a reduction in compensation related expenses, which is already implemented, and consolidation of processing and distribution facilities, which will be completed at the end of the first quarter 2008. The plan is designed to accelerate the company's long-term strategy to become the global leader in healthy, fresh foods as well as to improve profitability and efficiency through consolidation of operations and simplification of overhead structure.

The restructuring will drive greater integration and efficiency across business units and geographies, resulting in one relationship manager for customers, a global supply chain, and a global innovation program with targeted priorities and better execution. As previously reported, the company incurred a $26 million one-time charge in the fourth quarter 2007 related to severance costs and certain asset write-downs under the restructuring plan.