Dole Food Co. Inc. Announces Initial Assessment of Hurricane Mitch Damage

Business Wire, Nov 3, 1998

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Nov. 3, 1998--Dole Food Co. Inc. (NYSE:DOL) Tuesday announced that it incurred significant damage from Hurricane Mitch in its Central American operations in the countries of Honduras, Guatemala and Nicaragua.

Dole's production areas in these countries total approximately 40,000 acres of bananas (about half is company-owned), as well as sugar and palm oil plantations. This area, which represents approximately 25 percent of Dole's worldwide banana production, has been damaged in varying degrees of severity and will require significant rehabilitation.

While it is still too early to fully assess all damages and the resulting impact on pricing in worldwide banana markets, the company expects that it will take a write-off in the fourth quarter that may be in the $50 million to $70 million range.

Dole has dedicated these first days after one of the worst hurricanes of the century to assisting all communities affected. First efforts have focused on providing medical supplies, potable water, shelter and food to these ravaged areas.

For the past few days, Dole has been trying to feed approximately 20,000 people per day. Dole is cooperating fully with all government officials in this relief effort. The company has also been in contact with humanitarian groups in the United States as well as with the U.S. government to facilitate this effort.

Dole Food Co., with 1997 revenues of $4.3 billion, is the world's largest producer and marketer of high-quality fresh fruit and vegetables, and markets a growing line of packaged foods and fresh flowers.

This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include weather-related phenomena, market responses to industry pressures, changes in currency exchange rates, and other competitive actions. Further information on the factors that could affect Dole's financial results is included in its SEC filings, including its Form 10-K.