Dole Foods rises after profitable quarter

Fri Mar 16, 2012 12:00pm EDT

Actress Helen Mirren (L) poses with David Murdock, chairman of Dole Food, at the premiere of her film 'The Tempest' in Hollywood December 6, 2010. REUTERS/Fred Prouser

Actress Helen Mirren (L) poses with David Murdock, chairman of Dole Food, at the premiere of her film 'The Tempest' in Hollywood December 6, 2010.

Credit: Reuters/Fred Prouser

(Reuters) - Shares of fruit and fresh vegetable distributor Dole Food Co Inc DOLE.N rose more than 12 percent on Friday, after the company swung to a fourth-quarter profit, helped by cost cuts.

The company, founded in the 1851, has been reducing costs to protect margins in the face of volatile demand for bananas, its biggest-selling item.

On Thursday, Dole Food said expense-reduction efforts helped the company post a quarterly profit despite increasing input costs.

However, Deutsche Bank cut its price target on the stock to $11 from $12 saying the North American banana market remains "challenging."

Shares of the company were up $1.12 at $11.09 on Friday on the Nasdaq.

(Reporting by Mihir Dalal in Bangalore; Editing by Saumyadeb Chakrabarty)

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