An E. coli outbreak linked to romaine lettuce this spring, plus an oversupply of vegetables, contributed to a decline in Dole Food Co.’s fresh vegetable segment in its third quarter financial report.
The report came out before the current E. coli outbreak on romaine lettuce, reported Nov. 20 by the U.S. Centers for Disease Control.
In the earnings report, Dole’s fresh fruit segment “performed strongly,” according to a Nov. 19 news release from Dublin-based Total Produce, which bought 45% of Dole July 31.
Dole’s results for the third-quarter period ending ending Oct. 6 showed that its earnings before interest, tax, depreciation and amortization (EBITDA) — a measure of a company’s operating performance — was $45.4 million in U.S. dollars, compared to $50.1 million for the same period in 2017, reflecting a $7.4 million drop in the company’s fresh vegetables segment.
Also in the third quarter, Dole sold its corporate headquarters for $50 million, earning a net gain of $7.3 million, which is not included in the EBITDA adjusted earnings.
The romaine lettuce’s E. coli outbreak last summer during the third quarter, affecting consumers in multiple states, was not directly linked to Dole, according to the release. And then the oversupply of vegetables resulted in lower pricing, which also reduced Dole’s first-half EBITDA by $30 million, before Total Produce’s investment.
