UPDATE 1-Dole considers sale or spinoff for packaged foods business

Thu Jul 19, 2012 5:48pm EDT

* Q2 EPS $0.80 vs est $0.72

* In talks with parties interested in select businesses

July 19 (Reuters) - Fruit and vegetable distributor Dole Food Co Inc, which is currently exploring strategic options for some of its segments, reported a better-than-expected quarterly profit and said it is considering a sale or spinoff of its worldwide packaged foods business.

The company, which has hired Deutsche Bank Securities Inc and Wells Fargo Securities LLC to assist its strategic review, said it is in talks with third parties who have expressed interest in select businesses.

The company, which is considering spinning off its packaged foods segment to its current stockholders, said in May it may consider a full or partial separation for one or more of its businesses through a spinoff or other capital markets transaction.

Net income fell to $65.5 million, or 74 cents per share, in the second-quarter from $83.1 million, or 94 cents per share, a year earlier.

Excluding items, the company earned 80 cents per share from continuing operations.

Revenue for the quarter fell 10 percent to $1.71 billion.

Analysts, on average, were expecting earnings of 72 cents on revenue of $1.82 billion, according to Thomson Reuters I/B/E/S.

Dole Foods shares closed at $8.83 on Thursday on the New York Stock Exchange.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.