EMEA News
Dip in Bunker Costs Helps Del Monte to Higher Q3 Profits
Fresh Del Monte Produce Inc. (FDP) yesterday announced improved earnings for the third quarter of 2014, citing a range of factors including the reduction of bunker costs.
"We are pleased to report a strong third quarter," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer.
Sales rose strongly for FDP while costs were contained on the whole, with the company showing sales of $884.6 million against cost of sales of $810.7 million, translating after adjustments to a year-on-year tripling of earnings per diluted share.
"Bunker fuel decreased 1% versus the prior year and represented 4% of our total cost to sales," said Mohammad Abu-Ghazaleh in a conference call with investors, suggesting FDP's bunker spend was around $32.5 million for Q3 2014.
Abu-Ghazaleh said FDP would continue with its current strategy but that challenges may lay ahead.
"We foresee the headwinds of a difficult economic market in Europe and oversupply of fruit as well a result of sanctions in the Ukraine and Russia and logistical issues caused by the situation in the Middle East," he said.
Lukoil recently said it expected western sanctions against Russia to weigh on European bunker sales in the country.
