Fresh Del Monte Produce Inc. reported financial results for the quarter ended March 30, 2012. For the first quarter of 2012, the company reported earnings per diluted share of $1.08, compared with earnings per diluted share of $0.93 in the first quarter of 2011, or excluding asset impairment and other charges, earnings per diluted share of $0.96 in the first quarter of 2011.
"We made good strategic progress during the first quarter of 2012, while achieving solid earnings results for our shareholders," said Mohammad Abu-Ghazaleh, chairman and chief executive officer in a prepared statement. "Our business was favorably impacted by our long term initiative of assuming control of the sales and marketing function for Southern Europe, and by improvements in our logistics structure. Additionally, we saw continued growth in our fresh-cut produce business, and continued expansion of our operations internationally to bring our products closer to end customers. Despite these advances, our decisions to protect our margins resulted in lower net sales in our tomato and melon product lines and in our banana business in Northern Europe. However, with our emphasis on focused process and efficiency improvement and a strong balance sheet, we are confident we are on the right track to build long-term value.”
Net sales for the first quarter of 2012 were $897.9 million, compared with $974.0 million in the prior year period. The decrease in net sales for the quarter was the result of lower net sales across all of the company's business segments, primarily due to lower sales volume in the company's other fresh produce business and lower sales volume of bananas in the company's Middle East and Asia regions.
Gross profit for the first quarter of 2012 was $112.4 million, compared with $122.8 million in the first quarter of 2011. The decrease in gross profit for the quarter was primarily the result of lower sales. The decrease was partially offset by higher gross profit in the company's other fresh produce business segment, primarily due to improvements in the company's melon and gold pineapple product line.
Operating income for the first quarter of 2012 was $65.5 million, compared with $74.9 million in the prior year period. The decrease in operating income for the quarter was primarily attributable to lower gross profit.
Net income for the first quarter of 2012 was $62.5 million, compared with $55.2 million in the first quarter of 2011. Excluding asset impairment and other charges, the company reported net income of $62.6 million in the first quarter of 2012, compared with net income of $57.1 million in the first quarter of 2011. The increase in net income for the quarter was primarily the result of lower tax and interest expense.
