UPDATE 1-Chiquita Q2 profit beats Wall Street view

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July 31 (Reuters) - Banana distributor Chiquita Brands International Inc (CQB.N) posted better-than-expected second-quarter earnings, helped by higher banana prices and a favorable euro exchange rate.

The company, known for its namesake bananas and Fresh Express bagged salads, reported net income of $62.1 million, or $1.37 a share, for the quarter ended June 30, compared with $8.6 million, or 20 cents a share, a year earlier.

For continuing operations, the company, which competes with Fresh Del Monte Produce Inc (FDP.N) and privately held Dole Food, reported earnings of $1.31 per share.

The latest quarter includes $6 million, or 13 cents a share, from the resolution of a claim related to a non-income tax refund.

Total net sales for the quarter stood at $1.39 billion, including sales from its unit Atlanta AG, which the company has agreed to sell.

Analysts on average expected earnings of $1.09 a share, before special items, on revenue of $1.27 billion, according to Reuters Estimates.

The company expects to generate "significant improvement" in sales and operating income from continuing operations for the full year compared to 2007, mostly due to price rises and restructuring, which are offsetting increases in product supply costs.

Shares of the Cincinnati-based company closed down 4 percent at $15.35 Thursday on the New York Stock Exchange. (Reporting by Anne Pallivathuckal in Bangalore; Editing by Deepak Kannan)