CINCINNATI, Oct. 27, 2009 (PR Newswire Europe) -- v>

- Sustains strong momentum with comparable Q3 2009 EPS of US$0.20; GAAP EPS of US$0.11

- Progress in salads to deliver full-year operating margin of seven to eight percent

- Expects significant improvement in full-year comparable net income

Chiquita Brands International, Inc. (NYSE: CQB) today released financial and operating results for the third quarter 2009. All figures in this press release are for continuing operations.

For the third quarter 2009, the company reported GAAP income of US$5 million, or US$0.11 per diluted share, on net sales of US$801 million versus a loss of US$7 million, or (US$0.16) per diluted share, on net sales of US$840 million in the 2008 quarter. On a comparable basis, income in the third quarter was US$9 million, or US$0.20 per diluted share, versus a loss of US$15 million, or (US$0.33) per diluted share, in the 2008 period. The comparable basis amounts exclude certain items described below under "Items affecting comparability."

"Our third quarter results reflect the terrific progress of our diversification strategy and ongoing pricing and cost discipline," said Fernando Aguirre, chairman and chief executive officer. "We significantly improved over year-ago results to deliver profitability by driving costs out of the business and adhering to a pricing discipline to overcome some historically seasonal aspects of our business, as well as a tough economic environment. Our value-added salads business is showing significant and sustainable improvement and our focus on consistent execution is continuing to deliver strong results in bananas in North America and Europe."

Aguirre added, "We are encouraged by our strong momentum and are confident that, absent any major unforeseen events, we will achieve a year-over-year improvement in comparable second-half results of at least as much as we achieved in the first-half. Looking ahead, we are well-positioned to capitalize on profitable growth opportunities as we continue to transform into a more stable and predictable business. While we will remain diligent in managing our business for profitability, our attention is focused on growth in new geographies, distribution channels and innovative products."

2009 THIRD QUARTER SUMMARY

(The following table shows adjustments made to income and EPS from continuing operations between comparable and GAAP results. See "Items affecting comparability" below for a description of items excluded on a comparable basis. Exhibit B provides a reconciliation by segment for "Operating income.")

(All amounts in US Dollars unless otherwise specified) (in millions, except per Income (loss) per share amounts) Income (loss) diluted share 2009 2008 2009 2008 ---- ---- ---- ---- Comparable results $9 $(15) $0.20 $(0.33) Restructuring costs (2) (1) (0.04) (0.02) Incremental non-cash interest expense on Convertible Notes (2) (2) (0.04) (0.03) Gain (loss) on debt purchases (0) 10 (0.00) 0.22 --- --- ----- ---- As Reported on a GAAP basis $5 $(7) $0.11 $(0.16) === === ===== ====== Table may not total due to rounding.

Net Sales and Comparable Results: Quarterly sales decreased 5 percent year-over-year to US$801 million principally from previously implemented reductions in unprofitable foodservice volumes in salads. Comparable net income for the third quarter 2009 increased by US$24 million versus the 2008 quarter due to increased network and manufacturing efficiencies in salads and lower interest costs, net of higher taxes on income.

Cash, Debt and Liquidity: Cash flow from operations for the first nine months of 2009 was US$164 million, a significant improvement compared to US$46 million in the same period of 2008. At Sept. 30, 2009, cash and equivalents increased to US$176 million and debt decreased to US$669 million. During September 2009, the company purchased US$25 million of its senior notes in the open market, comprised of US$16 million principal amount of 7 1/2% senior notes and US$9 million principal amount of 8 7/8% senior notes, as part of the company's ongoing commitment to further strengthen its financial position. Annualized interest expense will be reduced by approximately US$2 million as a result of the repurchases. With US$128 million of available revolving credit and no more than US$20 million in debt maturities in any year until 2014, the company continues to have ample liquidity and financial flexibility.

Banana Segment: Net sales for the segment were roughly flat at US$472 million. The benefit of higher volume in the Mediterranean and the Middle East and higher local pricing in core European markets was offset by the effects of lower volume in core European markets and lower European exchange rates. In North America, banana prices were relatively unchanged from the year-ago quarter, despite a significant decline in fuel surcharges, on slightly higher volume. Operating income was US$22 million for both 2009 and 2008.

Salads and Healthy Snacks Segment: Net sales decreased 11 percent to US$289 million, primarily as a result of the reduction of certain unprofitable foodservice volumes in North America beginning in the fourth quarter of 2008. Operating income increased to US$24 million, versus a loss of US$8 million in the third quarter of 2008, due to improved pricing, distribution network efficiencies, sustainable cost reductions and lower net fuel costs.

Other Produce: Net sales for the segment were US$40 million compared to US$42 million in the 2008 quarter. The segment had an operating loss of US$2 million, versus income of less than US$1 million in 2008, as a result of lower volumes and margin performance in melons and grapes.

2009 OUTLOOK

Based on the company's strong performance for the first nine months of 2009 and absent any major unforeseen negative events, the company continues to expect significant full-year 2009 improvement on a comparable basis versus 2008. Second-half 2009 comparable net income is expected to improve from 2008 levels by at least as much as in the first half of the year, even though fourth quarter results are likely to be lower than the third quarter due to seasonally lower consumption of salads and planned investments in consumer marketing and innovation, consistent with the company's long-term plans to drive profitable sales growth.

In the Banana segment, sourcing and production costs are expected to be higher in the fourth quarter of 2009 compared to the year-ago period due to increases in purchased fruit contract pricing and government-imposed exit prices. Banana pricing is expected to remain relatively stable in North America, despite a significant decline in fuel-related surcharges as a component of pricing. In core European markets, local banana pricing currently continues to exceed year-ago levels, while the U.S. dollar exchange rate, of US$1.50/euro at Oct. 23, 2009, compares favorably versus the fourth quarter 2008 average of US$1.32/ euro. The company has hedged approximately 75 percent of its fourth quarter 2009 euro exposure at about US$1.44/euro, and approximately 50 percent of its exposure in the first half of 2010 at US$1.39/euro, using put options that allow the company to retain the benefit of higher exchange rates.

In the Salads and Healthy Snacks segment, the company expects to deliver an operating margin for salads of seven to eight percent for the full-year 2009. Salad results in the fourth quarter are expected to reflect seasonally lower consumption, as well as planned investments in consumer marketing and innovation.