Chiquita Brands International, Inc. (NYSE: CQB) announced an improved net income for the first quarter of 2013, despite a drop in sales for its core banana business.

Net banana sales were down 3% at US$505 million due to lower volumes in Europe, price prioritization over volume, negative euro hedging effects and lower North American prices.

"These factors were partially offset by higher local currency pricing in Europe and increased volume sales of bananas in North America," the company said.

"Improvements in sourcing and logistics cost related to Chiquita's value chain restructuring more than offset the decrease in sales, and Comparable operating income increased to $27 million in the first quarter of 2013 from $25 million in the same period of 2012."

In contrast,  net income rose to US$2 million, up from an US$11 million net loss for the first quarter of 2012.  Comparable operating income was also reported at US$23 million, up from US$13 million.

CEO Ed Lonergan commented on the company's continued restructuring plans and focus on core products.

"We are pleased that our first quarter results reflect the initial benefits from these strategic decisions and actions," he said.

"The improvements overcame euro exchange rates that negatively impacted this quarter by $12 million after hedging, and we view these results as a clear sign of the progress we are making and a good first step toward achieving our long-term financial targets."

He emphasized the company had “shed” arrangements in Europe that did not meet profit targets.

Although banana sales dropped, Lonergan said performance in all core businesses continued to improve, including increased segment shares and new contracts in the banana and salad businesses.

Net sales for salads and healthy snacks increased 1% to US$240 million with healthy snacks as the champion of the category, offsetting lower sales of retail value-added salads.

For 2013, the company forecast U.S. banana contract wins, progress for label salads and the consolidation of U.S. Midwest salad facilities.

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