- -----------------------------------------------------------------
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarterly Period Ended Commission File
September 30, 1998 Number 1-1550
CHIQUITA BRANDS INTERNATIONAL, INC.
Incorporated under the IRS Employer I.D.
Laws of New Jersey No. 04-1923360
250 East Fifth Street, Cincinnati, Ohio 45202
(513) 784-8000
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such filing requirements for the past
90 days. YES X NO
As of October 30, 1998, there were 65,417,755 shares of Common
Stock outstanding.
Page 1 of 13 Pages
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<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
-----------------------------------
TABLE OF CONTENTS
-----------------
Page
----
PART I - Financial Information
- ------
<TABLE>
<CAPTION>
<S> <C> <C>
Consolidated Statement of Income for the
quarters and nine months ended
September 30, 1998 and 1997 . . . . . . . . . . . . . 3
Consolidated Balance Sheet as of
September 30, 1998, December 31, 1997
and September 30, 1997. . . . . . . . . . . . . . . . 4
Consolidated Statement of Cash Flow for the
nine months ended September 30, 1998 and 1997 . . . . 5
Notes to Consolidated Financial Statements. . . . . . . 6
Management's Analysis of Operations and
Financial Condition . . . . . . . . . . . . . . . . . 9
PART II - Other Information
- -------
Item 1 - Legal Proceedings. . . . . . . . . . . . . . . 12
Item 6 - Exhibits and Reports on Form 8-K . . . . . . . 12
Signature. . . . . . . . . . . . . . . . . . . . . . . . . 13
</TABLE>
<PAGE>
Part I - Financial Information
CHIQUITA BRANDS INTERNATIONAL, INC.
-----------------------------------
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
-------------------------------------------
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
------------------ ---------------------
1998 1997 1998 1997
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $632,126 $556,261 $2,093,534 $1,833,904
-------- -------- ---------- ----------
Operating expenses
Cost of sales 509,973 463,993 1,612,460 1,412,100
Selling, general
and administrative 85,279 76,267 253,971 223,479
Depreciation 24,326 21,377 70,569 64,418
-------- -------- ---------- ----------
619,578 561,637 1,937,000 1,699,997
-------- -------- ---------- ----------
Operating income
(loss) 12,548 (5,376) 156,534 133,907
Interest income 3,283 3,848 10,173 12,481
Interest expense (26,744) (26,704) (82,273) (82,482)
Other income, net 157 217 7,230 656
-------- -------- ---------- ----------
Income (loss)
before income
taxes (10,756) (28,015) 91,664 64,562
Income taxes -- -- (8,500) (8,200)
-------- -------- ---------- ----------
Net income (loss) $(10,756) $(28,015) $ 83,164 $ 56,362
======== ======== ========== ==========
Earnings per
common share:
Basic $ (.23) $ (.57) $ 1.09 $ .78
Diluted (.23) (.57) 1.03 .77
Dividends per
common share $ .05 $ .05 $ .15 $ .15
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
----------------------------------
CONSOLIDATED BALANCE SHEET (Unaudited)
-------------------------------------
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1998 1997 1997
------------- ------------ -------------
<S> <C> <C> <C>
ASSETS
- ------
Current assets
Cash and
equivalents $ 107,956 $ 125,702 $ 172,330
Trade receivables
(less allowances
of $10,983, $10,683
and $10,235) 208,959 184,913 203,788
Other receivables,
net 79,215 87,301 65,726
Inventories 459,477 349,948 321,616
Other current assets 29,496 35,602 39,595
------------- ------------ -------------
Total current
assets 885,103 783,466 803,055
Property, plant and
equipment, net 1,189,867 1,151,396 1,143,005
Investments and
other assets 318,184 301,173 312,574
Intangibles, net 194,491 165,578 156,564
------------- ------------ -------------
Total assets $ 2,587,645 $ 2,401,613 $ 2,415,198
============= ============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities
Notes and loans
payable $ 77,067 $ 59,659 $ 36,395
Long-term debt due
within one year 37,373 92,905 90,430
Accounts payable 279,828 205,323 208,307
Accrued liabilities 102,272 125,231 108,691
------------- ------------ -------------
Total current
liabilities 496,540 483,118 443,823
Long-term debt of
parent company 684,672 689,080 696,731
Long-term debt of
subsidiaries 327,577 272,892 284,615
Accrued pension and
other employee
benefits 80,029 86,676 87,107
Other liabilities 95,573 89,761 90,246
------------- ------------ ------------
Total liabilities 1,684,391 1,621,527 1,602,522
------------- ------------ ------------
Shareholders' equity
Preferred and
preference stock 253,475 253,239 253,239
Common stock, 1998 -
$.01 par value
(65,407 shares),
1997 - $.33 par
value (61,168 and
59,357 shares) 654 20,389 19,786
Capital surplus 754,970 672,944 642,881
Accumulated deficit (105,845) (166,486) (103,230)
------------- ------------ ------------
Total shareholders'
equity 903,254 780,086 812,676
------------- ------------ ------------
Total liabilities
and shareholders'
equity $ 2,587,645 $ 2,401,613 $ 2,415,198
============= ============ ============
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
----------------------------------
CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited)
----------------------------------------------
(In thousands)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
----------------------
1998 1997
-------- ---------
<S> <C> <C>
Cash provided (used) by:
Operations
Net income $ 83,164 $ 56,362
Depreciation and amortization 75,581 68,496
Write-downs of cultivations and
long-term investment 8,900 --
Changes in current assets and
liabilities (50,819) (54,713)
Other 10,106 7,097
-------- ----------
Cash flow from operations 126,932 77,242
-------- ----------
Investing
Capital expenditures (84,133) (52,096)
Acquisitions of businesses (26,199) --
Refundable deposits for
container equipment (1,366) (10,351)
Other 3,903 (4,750)
-------- ----------
Cash flow from investing (107,795) (67,197)
-------- ----------
Financing
Debt transactions
Issuances of long-term debt 73,171 2,148
Repayments of long-term debt (95,631) (68,293)
Increase (decrease) in notes
and loans payable 6,689 (41,018)
Stock transactions
Issuances of common stock 1,411 4,980
Dividends (22,523) (21,090)
-------- ----------
Cash flow from financing (36,883) (123,273)
-------- ----------
Decrease in cash and equivalents (17,746) (113,228)
Balance at beginning of period 125,702 285,558
-------- ----------
Balance at end of period $107,956 $ 172,330
======== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
5
<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
----------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
-----------------------------------------------------
Interim results are subject to significant seasonal variations
and are not necessarily indicative of the results of operations
for a full fiscal year. In the opinion of management, all
adjustments (which include only normal recurring adjustments)
necessary for a fair statement of the results of the interim
periods shown have been made. See Notes to Consolidated Financial
Statements included in the Company's Annual Report on Form 10-K
for the year ended December 31, 1997 for additional information
relating to the Company's financial statements.
Earnings Per Share
- ------------------
Basic and diluted earnings per common share ("EPS") are
calculated as follows (in thousands, except per share amounts):
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
----------------- ------------------
1998 1997 1998 1997
--------- --------- -------- --------
<S> <C> <C> <C> <C>
Net income (loss) $ (10,756) $ (28,015) $ 83,164 $ 56,362
Dividends on preferred
and preference stock (4,275) (4,227) (12,826) (12,672)
--------- -------- -------- --------
Net income attribut-
able to common
shares for basic
EPS (15,031) (32,242) 70,338 43,690
Add back dividends on
preferred and
preference stock -- -- 12,826 --
--------- --------- --------- --------
Net income attribut-
able to common
shares for diluted
EPS $ (15,031) $ (32,242) $ 83,164 $ 43,690
========= ========= ======== ========
Weighted average common
shares outstanding 65,375 56,547 64,503 56,280
Nonvested restricted
shares (72) (160) (72) (160)
--------- -------- -------- --------
Shares used to
calculate basic
EPS 65,303 56,387 64,431 56,120
Assumed conversion of
preferred
and preference stock -- -- 15,479 --
Assumed exercise of
stock options -- -- 597 767
-------- -------- -------- --------
Shares used to
calculate diluted
EPS 65,303 56,387 80,507 56,887
======== ======== ========= =========
Basic EPS $ (.23) $ (.57) $ 1.09 $ .78
Diluted EPS (.23) (.57) 1.03 .77
</TABLE>
The assumed conversions to common stock of the Company's 7%
convertible subordinated debentures, preferred stock and
preference stock and the assumed exercise of stock options were
excluded from the diluted EPS computations for periods in which
these items, on an individual basis, were anti-dilutive.
6
<PAGE>
Acquisitions
- ------------
In January 1998, Chiquita acquired Stokely USA, Inc.
("Stokely"), previously a publicly-owned vegetable canning
business with annual net sales of approximately $150 million. In
connection with the acquisition, Chiquita issued $11 million of
common stock (.8 million shares) in exchange for all outstanding
Stokely shares and issued $33 million of common stock (2.2 million
shares) and paid $18 million of cash to retire corresponding
amounts of Stokely debt.
In June 1998, Chiquita's Australian subsidiary acquired
Campbell Mushrooms Pty Limited and Campbell Mushrooms Centre Pty
Limited (collectively, the "Australian Mushroom Companies"), which
had annual net sales of approximately $30 million. In connection
with the acquisition, Chiquita issued $12 million of common stock
(.9 million shares) and paid $5 million of cash in exchange for
all of the outstanding capital stock of the Australian Mushroom
Companies.
The assets acquired from Stokely and the Australian Mushroom
Companies consisted primarily of trade receivables ($13 million),
inventories ($66 million), property, plant and equipment ($50
million) and intangibles ($35 million). Liabilities consisted
primarily of debt ($36 million) and accounts payable and accrued
liabilities ($42 million). Each transaction was accounted for as
a purchase.
Inventories (in thousands)
- --------------------------
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1998 1997 1997
------------ ------------ ------------
<S> <C> <C> <C>
Bananas and other
fresh produce $ 38,952 $ 36,035 $ 33,409
Canned vegetables 228,200 128,824 109,250
Other food products 7,850 8,661 8,805
Growing crops 121,891 115,007 113,371
Materials and
supplies 54,587 53,909 49,442
Other 7,997 7,512 7,339
------------- ------------ ------------
$ 459,477 $ 349,948 $ 321,616
============= ============ =============
</TABLE>
Other
- -----
Chiquita has a long-standing policy of periodically hedging
transactions denominated in foreign currencies. At September 30,
1998, the Company had option contracts which ensure conversion of
approximately $100 million of foreign sales through the end of
1998 at rates not higher than 1.78 Deutsche marks per dollar or
lower than 1.61 Deutsche marks per dollar and approximately $325
million of foreign sales in 1999 at rates not higher than 1.77
Deutsche marks per dollar or lower than 1.59 Deutsche marks per
dollar. The carrying value of these option contracts at September
30, 1998 was approximately $7 million, which exceeded the fair
value based on quoted market prices by approximately $13 million.
7
<PAGE>
In 1998, Chiquita adopted Statement of Financial Accounting
Standards No. 130 "Comprehensive Income" and applied this standard
to all periods presented in these financial statements. The
adoption of this Statement had no impact on the Company's net
income or shareholders' equity. Comprehensive income (loss) for
all periods presented consisted solely of net income (loss) and
unrealized foreign currency translation gains (losses), as follows
(in thousands):
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
-------------------- ------------------
1998 1997 1998 1997
--------- -------- -------- -------
<S> <C> <C> <C> <C>
Net income (loss) $ (10,756) $(28,015) $83,164 $56,362
Unrealized foreign
currency translation
gains (losses) 4,603 52 3,620 (5,592)
--------- --------- -------- -------
Comprehensive income
(loss) $ (6,153) $(27,963) $86,784 $50,770
========= ========= ======== =======
</TABLE>
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133 "Accounting
for Derivative Instruments and Hedging Activities." The Statement
requires the recognition of all derivatives on the balance sheet
at fair value. The Company's derivatives, primarily foreign
currency option contracts and foreign exchange forward contracts,
are specifically designated as hedges. Changes in the fair value
of these derivatives will either be offset against the change in
fair value of the corresponding hedged assets, liabilities, or
firm commitments through earnings or reflected as other
comprehensive income until the hedged item is recognized in
earnings. Adoption of the Statement is required by January 1,
2000. This new Statement is presently under review by the
Company.
8
<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
----------------------------------
MANAGEMENT'S ANALYSIS OF
------------------------
OPERATIONS AND FINANCIAL CONDITION
----------------------------------
Hurricane Mitch
- ---------------
In late October and early November 1998, Chiquita incurred
significant damage to its operations in Honduras as a result of
widespread flooding caused by Hurricane Mitch. The Company
believes that most banana industry plantings in Honduras have been
destroyed or severely damaged. Chiquita is in the early stages of
assessing damage to its banana farms and other production
facilities (edible oils and processed fruit ingredients) and
currently estimates that asset write-offs and charges relating to
Honduras for its fourth quarter ending December 31, 1998 will be
in the $50 million range. The actual amounts will not be known
until the Company is able to assess the extent of the damage
incurred and determine the rehabilitation to be performed and the
amount of insurance recoveries. Flooding also occurred in
Guatemala. Although it is too early to determine the extent of
storm-related damage to the Company's Guatemalan operations, the
damage is believed to be less severe than in Honduras.
Chiquita owns approximately 7,000 hectares (17,000 acres) under
banana cultivation in Honduras out of an estimated industry total
of approximately 18,000 hectares (44,000 acres). In Guatemala,
the Company produces bananas on approximately 3,000 hectares
(8,000 acres) as compared to an estimated industry total of
approximately 19,000 hectares (46,000 acres). Banana production
from these countries by Chiquita and its two principal competitors
will be significantly reduced for the remainder of 1998 and well
into 1999. An event such as this could result in lower sales
volume, depending on the Company's ability to obtain adequate
supplies from other sources, and increased costs. However, it
could also restrict worldwide supplies and lead to increased
industry prices for bananas.
Operations
- ----------
Net sales for the quarter and nine months ended September 30,
1998 increased by 14% over the prior year amounts primarily from
the expansion of Chiquita's vegetable canning operations through
acquisitions completed in late 1997 and early 1998. Operating
expenses also increased over the prior year levels primarily as a
result of these acquisitions.
Operating income for the quarter and nine months ended
September 30, 1998 increased by $18 million and $23 million from
the prior year primarily as a result of increased earnings in the
Company's banana business and, to a lesser extent, the Company's
Diversified Foods Group. The improvement in banana earnings
resulted from lower delivered product costs as the Company
continued to realize increased farm productivity and
transportation cost reductions on higher worldwide banana volume.
The lower delivered product costs for the quarter more than offset
the effect of lower dollar price realizations for banana sales in
North America and Europe.
The 1998 year-to-date results include second quarter write-offs
of a non-operating investment and of impaired banana cultivations
in Chiquita's western Panama division which the Company was unable
to properly maintain during a two-month strike. In addition to
9
<PAGE>
the second quarter write-off of these cultivations, the Company
has been incurring unrecovered fixed costs in this division. Full
production at this division is expected to be restored in the
first quarter of 1999. The second quarter write-offs were offset
by a second quarter gain from a cash settlement in excess of $10
million of claims against The Cincinnati Enquirer concerning a
series of newspaper articles about the Company published in May
1998. The write-off of the investment and the settlement gain are
included in "Other income, net," and the write-off of banana
cultivations is included in "Cost of sales."
The Company's effective tax rate is affected by the level and
mix of income among various domestic and foreign jurisdictions in
which the Company operates.
Liquidity and Capital Resources
- -------------------------------
Cash flow from operations increased to $127 million in the
first nine months of 1998 from $77 million in the prior year
period primarily as a result of improved earnings. Cash flow from
operations was used primarily for capital expenditures and
business acquisitions. At September 30, 1998, $26 million of
borrowings were drawn against Chiquita's $125 million revolving
credit facility. In addition, approximately $35 million of
additional borrowings were available for the Company's vegetable
canning operations under a separate committed line of credit
facility.
The Hurricane Mitch rehabilitation spending is generally
expected to be incurred over the next 18 months. The Company
expects to be able to finance this rehabilitation with cash flow
from operations and its existing borrowing capacity.
World Trade Organization Proceeding
- -----------------------------------
Reference is made to the discussion in Item 1 - "Risks of
International Operations" in the Company's 1997 Form 10-K
concerning (a) the World Trade Organization ("WTO") proceeding
brought by the United States and five Latin American nations
challenging the European Union ("EU") banana quota and licensing
regime and (b) the resulting WTO rulings that (i) the EU regime
violates numerous international trade obligations to the detriment
of Latin American supplying countries and United States marketing
firms such as Chiquita and (ii) the EU must fully implement banana
policies consistent with the WTO findings not later than January
1, 1999. Reference is also made to the discussion in the
Company's June 30, 1998 Form 10-Q of the new quota and licensing
regime that the EU adopted in July 1998 to take effect January 1,
1999 and the expressions by the United States and the other five
challenging nations that the new regime does not comply with the
WTO's rulings. On October 22, 1998, the United States, through
the Office of the U.S. Trade Representative ("USTR"), initiated
formal procedures for adoption of sanctions against the EU under
Section 301 of the U.S. Trade Act of 1974 by publishing notice in
the Federal Register of the USTR's proposed determination that the
EU's proposed measures fail to implement the WTO rulings. On
November 10, 1998, the USTR published notice that it proposes to
determine that the imposition of prohibitive (100% of value)
duties on selected EU products is an appropriate sanction, that it
will announce its definitive actions, including the final list of
EU products subject to the duties, on December 15, 1998 and that
the actions will be effective as early as February 1, 1999 and no
later than March 3, 1999.
Year 2000 Project
- -----------------
Chiquita's company-wide Year 2000 Project ("Project") is
proceeding according to schedule. The Project addresses the
inability of computer and micro-processor systems to distinguish
between the year 1900 and the year 2000. When Chiquita began the
Project in the early 1990's, the primary goal was to make each
10
<PAGE>
system Year 2000 compliant in the normal course of replacing and
upgrading the Company's systems. Many Company systems have been
replaced or upgraded in the normal course. Additionally, a
company-wide Year 2000 policy was developed in 1996 which outlined
the scope and responsibility for resolution of Year 2000
compliance issues for remaining Company systems and third parties.
This policy covers computer hardware and operating software,
applications software, telephone hardware and software, networking
hardware and software, manufacturing equipment, vessel navigation
and control equipment and other embedded technology issues.
The Project has included the following phases: (1)
inventorying the Company's hardware, software and equipment; (2)
assessing which items have Year 2000 issues; (3) determining
critical versus non-critical items; (4) replacing or repairing
items that have Year 2000 issues; (5) testing material items; (6)
assessing Year 2000 readiness of the Company's material customers
and suppliers; and (7) developing contingency plans. Critical
items are defined as those believed by the Company to have a risk
involving the safety of individuals, material damage to property
or a material adverse effect on earnings.
As of September 30, 1998, the first three phases of the Project
have been substantially completed. For the majority of the
critical items, the phases for replacement and repair, testing and
contingency planning are complete while those phases for many of
the non-critical items are still in process. The Company intends
to complete the remaining replacement and repair effort, conclude
final testing and have in place the necessary contingency plans
before the end of 1999.
The Company is assessing the Year 2000 readiness of material
customers and suppliers, including financial institutions,
telecommunications companies, public utility companies and
commercial vendors. Assessment has included obtaining written
certifications of Year 2000 readiness from the third party, review
of the third party's Year 2000 readiness plan and site visits.
This assessment is substantially complete for those third parties
whose functions are most critical to the operations of the
Company, such as financial institutions. Assessment is ongoing
for remaining material customers and suppliers. Assessment and
development of necessary contingency plans are expected to be
completed before the end of 1999.
The estimated total cost of the Project for systems that have
not been replaced or upgraded in the normal course is less than
$10 million. Most of this cost has already been incurred by the
Company.
Due to the widespread uncertainties inherent in the Year 2000
problem, resulting primarily from the uncertainty of the Year 2000
readiness of suppliers, customers and other third parties,
including U.S. and foreign governmental entities, the Company is
unable to determine at this time whether the consequences of Year
2000 failures will have a material impact on the Company's
financial statements. The Project is expected to significantly
reduce the level of risk that the Year 2000 issue will cause
significant interruptions to the Company's operations.
11
<PAGE>
EU Common Currency
- ------------------
On January 1, 1999, eleven European countries will begin the
implementation process for the EU common currency (the "Euro").
Private companies operating in these eleven countries will have
the option of transacting business in either the Euro or their
national currency through December 31, 2001. The Company believes
most of its affected customers will initially prefer to be
invoiced in their traditionally invoiced currencies. Although it
is impossible for the Company to predict the implications of the
Euro implementation on its European operations, the Company does
not believe it will have a material impact on its financial
statements.
* * * * *
This quarterly report contains certain information that may be
deemed to be "forward-looking statements" within the meaning of
the Private Securities Litigation Act of 1995. This information
is subject to a number of assumptions, risks and uncertainties,
including product pricing, costs to purchase or grow (and
availability of) fresh produce and other raw materials, currency
exchange rate fluctuations, natural disasters and unusual weather
conditions, operating efficiencies, labor relations, access to
capital, actions of governmental bodies, actions or failures to
act of customers, suppliers and other third parties with respect
to Year 2000 readiness issues, and other market and competitive
conditions, many of which are beyond the control of Chiquita.
Actual results or developments may differ materially from the
expectations expressed or implied in the forward-looking
information.
Part II - Other Information
- ---------------------------
Item 1 - Legal Proceedings
--------------------------
Reference is made to the discussion in the Company's 1997
Form 10-K of the lawsuits pending in several jurisdictions
against Chiquita and other banana producing companies which
used an agricultural chemical called DBCP, primarily in the
1970's, alleged to have caused sterility and other injuries.
Reference is also made to the agreement to settle substantially
all of these lawsuits described in the Company's June 30, 1998
Form 10-Q. In September 1998, one of the two class action
cases against the Company and others pending in the U.S.
District Court for the District of Hawaii (which were not
included in the settlement agreement) was dismissed on the
grounds that courts in the plaintiffs' home countries were more
appropriate forums for pursuing their claims.
Item 6 - Exhibits and Reports on Form 8-K
-----------------------------------------
Page
Number(s)
---------
(a) Exhibit 27 - Financial Data Schedule. . . . . . **
** Omitted from this copy of Quarterly Report on Form
10-Q. Copy included in report filed electronically with
the Securities and Exchange Commission.
(b) There were no reports on Form 8-K filed by the Company
during the quarter ended September 30, 1998.
12
<PAGE>
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
CHIQUITA BRANDS INTERNATIONAL, INC.
By: /s/ William A. Tsacalis
-----------------------------
William A. Tsacalis
Vice President and Controller
(Chief Accounting Officer)
November 13, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Chiquita Brands International, Inc. Form 10-Q for the nine months ended
September 30, 1998 and is qualified in its entirety by reference to such
financial information.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 107,956
<SECURITIES> 0
<RECEIVABLES> 219,942
<ALLOWANCES> 10,983
<INVENTORY> 459,477
<CURRENT-ASSETS> 885,103
<PP&E> 1,879,220
<DEPRECIATION> 689,353
<TOTAL-ASSETS> 2,587,645
<CURRENT-LIABILITIES> 496,540
<BONDS> 1,012,249
0
253,475
<COMMON> 654
<OTHER-SE> 649,125
<TOTAL-LIABILITY-AND-EQUITY> 2,587,645
<SALES> 2,093,534
<TOTAL-REVENUES> 2,093,534
<CGS> 1,612,460
<TOTAL-COSTS> 1,612,460
<OTHER-EXPENSES> 70,569
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 82,273
<INCOME-PRETAX> 91,664
<INCOME-TAX> 8,500
<INCOME-CONTINUING> 83,164
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 83,164
<EPS-PRIMARY> 1.09
<EPS-DILUTED> 1.03
</TABLE>
