Chiquita Reports Solid 2Q With Expenses Under Control

Chiquita Brands International, Inc. CQB showed higher than expected EPS ($1.36) in its 2Q, well ahead of BB&T Capital Market's expectations of $1.02. The rise in EPS results was due to better Fresh Express margins and banana pricing, according to BB&T. Chiquita also managed to lower operation costs due to the weaker euro, and reduced its guidance budget down from $110-120M to $80-90M. BB&T reiterates its "buy" rating for Chiquita, and also points out that Fresh Express, owned by Chiquita, has the largest share in the retail packaged salad category, outselling private labels more than 2:1. Chiquita Brands International, Inc. closed yesterday at $13.21.