Dole Food Bites Into 4Q Profit
It was revealed on Friday that Dole Food (NYSE: DOLE) saw a return to profitability in the fourth quarter, with the company making a concerted effort to reduce costs.
DOLE's adjusted results beat analyst's estimates, and the stock rocketed 10% on Friday morning trading.
According to CBS News, David DeLorenzo, Dole's president and CEO, said in a statement, “The cost reduction programs set forth in the past two years have helped improve earnings despite increasing input costs and the strength of foreign currencies.”
DeLorenzo said that Dole has agreed to seel its distribution company in Germany, which is a part of its plan to divest non-core assets to reduce debt and improve margins.
Late on Thursday, DOLE reported net income attributable to common shareholders of $4.2 million, or 5 cents per share, for the period ending December 31, compared to a net loss of $38.2 million, or 44 cents a share, the previous year.
However, it is not all good news. Revenues fell 1% to $1.54 billion from $1.56 billion. That missed Wall Street's estimate of $1.57 billion.
On Friday, in the morning trading, DOLE stock moved up $1.05, or 10.5%, to $11.02.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.