Charlotte-based produce multinational Chiquita Brands International (NYSE: CQB) has notched a slight uptick in comparable profit in the second quarter, despite lower productivity driven by dry weather on Central American farms.

Photo: AJ Maritan, via Flickr Creative Commons

The company recorded a 6.9% rise in adjusted EBITDA to US$62 million, on the back of improved sales and exchange rate benefits.

Chiquita's GAAP operating income however was down almost 10% at US$37 million, mostly because of US$3 million in expenses associated with the proposed combination with Fyffes, which will continue to be a key focus before an expected completion by the end of the year.

"Our second quarter results reflect sequential improvement versus the weather-impacted first quarter and versus year ago overall," CEO Ed Lonergan said in an announcement.

He said the business remained on track toward the long term goals of its 'return to the core' strategy despite substantial headwinds in the quarter and the year to date.

"We realized value and volume sales increases in our banana operations, but reduced productivity, principally due to dry weather, on both owned and third-party farms in Central America resulted in higher sourcing costs and less fruit to sell in our weekly pricing markets, principally in Europe and the Mediterranean," he said.

"In our retail salad segment, we delivered promised efficiency benefits from our Midwest plant consolidation and mix-driven pricing segment in the quarter.

"We remain confident in our ability to grow this business profitably and expect to benefits in the second half of 2014 from the pricing and efficiency initiatives announced in May and which became effective in July."

On the Fyffes merger in the works, he expressed confidence that the alliance would unite highly complementary businesses and teams, and allow for improved service and reliability to customers while improving operational efficiency.

"Our shareholder meeting to approve the transaction will take place on September 17, 2014, and we expect to close the transaction by the end of the year, subject to satisfaction of previously announced closing conditions," Lonergan said.

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