Dole Blames Weaker Profit on Banana Glut

Dole Food Co. said its first-quarter earnings are expected to be well below expectations due to a banana glut caused by El Nino conditions in Latin America. The higher-than-usual volume of bananas has caused prices to fall in the North American market. Westlake Village-based Dole Food said that if prices continue to drop during the remainder of the quarter, earnings for the first quarter could fall as much as 50% below the year-ago period. Heavy rains in Ecuador have reduced that country’s exports, while better weather in Central America has allowed those countries’ banana production to increase. Dole Food also said the Asian currency crisis is affecting its international divisions. Dole Food, with 1997 revenue of $4.3 billion, is the largest producer and marketer of fresh fruit and vegetables. Before the announcement, Dole Food stock rose $1.38 to a record $57.13 on the New York Stock Exchange.