FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest
Event Reported): February 11, 1998
CHIQUITA BRANDS INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
New Jersey 1-1550 04-1923360
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
250 East Fifth Street, Cincinnati, Ohio 45202
(Address of principal executive offices)
Registrant's telephone number, including area code:
(513) 784-8000
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Items 1, 2, 3, 4, 6, 8 and 9 are not applicable and are omitted from
this Report.
Item 5. Other Events.
The Company is making this filing in order to place the
information contained herein on file with the Securities and Exchange
Commission under the Securities Exchange Act of 1934. Reference is made
to the Company's February 11, 1998 News Release reporting 1997 financial
results, attached as Exhibit 7(c)99.1.
Item 7. Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired
Not Applicable
(b) Pro Forma Financial Information
Not Applicable
(c) Exhibits
99.1 News Release of the Company issued February 11, 1998.
<PAGE>
SIGNATURES
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 hereunto duly authorized.
Date: February 12, 1998 CHIQUITA BRANDS INTERNATIONAL, INC.
By: /s/William A. Tsacalis
----------------------
William A. Tsacalis
Vice President and Controller
<PAGE>
Exhibit 99.1
FOR IMMEDIATE RELEASE
CHIQUITA ANNOUNCES 1997 RESULTS
CINCINNATI, OHIO, February 11, 1998 --Chiquita Brands International,
Inc. today reported 1997 operating results that were in line with
previously announced expectations.
Net income for the year ended December 31, 1997 was $.3 million and the
per share result for the year was a loss of $.29 after deducting
preferred dividends.
For 1996, Chiquita reported full year income before unusual items of $43
million ($.55 per share) and a net loss of approximately $50 million
($1.13 per share). The 1996 net loss included an extraordinary charge
from debt retirements of $23 million ($.41 per share) and other unusual
charges of $70 million ($1.27 per share) primarily from write-offs and
additional costs from widespread flooding of banana production areas.
Operating results for 1997 were adversely affected by a stronger dollar
in relation to major European currencies (mitigated in part by the
Company's foreign currency hedging program) and by increased banana
production costs resulting primarily from the widespread flooding in
1996. These factors more than offset the benefit of higher local
European pricing during the second half of the year. Net sales were
$2.4 billion in both years. Net interest expense in 1997 was reduced by
$10 million compared to the prior year as a result of the Company's debt
reduction and refinancing activities.
For its 1997 fourth quarter, Chiquita's net loss was $56 million ($1.01
per share). In 1996, the Company reported a fourth quarter net loss of
$87 million ($1.65 per share) which included unusual charges and
additional costs primarily from flooding of $58 million ($1.05 per
share). Excluding these unusual charges and costs, Chiquita's 1996
fourth quarter loss was $29 million ($.60 per share). Net sales for the
1997 quarter were $600 million compared to $555 million in 1996.
Separately, the Company declared quarterly dividends of $.05 per share
on its common stock, $.7188 per share on its Series A Preferred Stock
and $.9375 per share on its Series B Preferred Stock. Each dividend is
payable as of March 7, 1998 to shareholders of record at the close of
business on February 21, 1998.
Chiquita is a leading international marketer, producer and distributor
of bananas and other quality fresh and processed food products.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Joseph W. Hagin (513) 784-8866
<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
SUMMARY OF CONSOLIDATED OPERATIONS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 1997 AND 1996
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Quarter Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $ 599,822 $ 555,163 $2,433,726 $2,435,248
========= ========= ========== ==========
Income (loss) before
unusual items $ (56,019) $ (29,160) $343 $42,572
Unusual items -- (58,300) -- (70,300)
--------- --------- ---------- ----------
Income (loss) before
extraordinary item (56,019) (87,460) 343 (27,728)
Extraordinary loss from
debt refinancings -- -- -- (22,838)
--------- --------- ---------- ----------
Net income (loss) $ (56,019) $ (87,460) $343 $ (50,566)
========= ========= ========== ==========
Less: dividends on
preferred stock (4,277) (4,223) (16,949) (11,955)
--------- --------- ---------- ----------
Net loss on common
shares $ (60,296) $ (91,683) $ (16,606) $ (62,521)
========= ========= ========== ==========
Diluted earnings (loss)
per share:
- Before unusual items $ (1.01) $ (.60) $ (.29) $ .55
- Unusual items -- (1.05) -- (1.27)
- Extraordinary loss -- -- -- (.41)
- Net loss (1.01) (1.65) (.29) (1.13)
Shares used to calculate
diluted earnings (loss)
per common share 59,741 55,448 57,025 55,195
</TABLE>
Quarterly results are subject to significant seasonal variations and are
not necessarily indicative of the results of operations for a full
fiscal year.
