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December 13, 2007 |
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CHIQUITA BRANDS: May Benefit from WTO's Ruling on EU Tariffs Ohio.com reports that Chiquita Brands International's profits could increase as a result of the World Trade Organization compliance panel's ruling that the European Union's import tariffs for bananas breached international trade rules. Oppenheimer & Co. analyst Barry Sine told Ohio.com that Chiquita Brands will be closely following the case. The European Union tariff costs Chiquita Brands about US$1 per share yearly. An Ecuadorian official commented to Ohio.com, "It was a total victory. We are very happy with the result." Michael Mann, a spokesperson for the European Union's Farm Commissioner Marian Fisher Boel, confirmed the loss to Ohio.com. However, Mr. Mann claimed that the WTO panel ignored data indicating a growth in European imports of bananas from Latin America, Ohio.com states. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/ -- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Panama and the Philippines. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. |
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