Chiquita Brands International, Inc : Chiquita Brands International, Inc : Chiquita Announces Preliminary Fourth Quarter and Full

  Chiquita Brands International, Inc : Chiquita Brands International, Inc :
  Chiquita Announces Preliminary Fourth Quarter and Full-Year 2012 Selected
                                   Results

  CHIQUITA ANNOUNCES PRELIMINARY FOURTH QUARTER AND FULL-YEAR 2012 SELECTED
                                   RESULTS

CHARLOTTE - January 28, 2013 - Chiquita Brands International, Inc. (NYSE: CQB)
today reported preliminary unaudited selected results for the fourth quarter
and full year 2012 in conjunction with a proposed refinancing. Because the
fourth quarter and full-year have only recently ended, the information that
follows is preliminary and based upon information available to the company as
of the date of this press release. The company has not finalized its financial
statement closing process for the fourth quarter and full year 2012, including
its calculations and accounting judgments related to income taxes. During the
course of that process, the company may identify items that would require it
to make adjustments, which may be material, to the amounts described below. As
a result, the estimates and rates below constitute forward-looking statements
and are subject to risks and uncertainties, including possible adjustments to
the preliminary operating results. The company is providing this information
and certain financial metrics on a one-time basis only and does not intend to
update this information prior to its regularly scheduled fourth quarter and
full year 2012 conference call and subsequent filings with the Securities and
Exchange Commission.

Fourth quarter 2012 net sales were approximately $738 million and the company
expects Comparable operating loss in the range of $10 - 20 million and
Adjusted EBITDA in the range of $(3) -7 million. This compares to fourth
quarter 2011 net sales of $722 million, Comparable operating loss of $2
million and Adjusted EBITDA of $14 million. The company expects fourth quarter
operating loss on a U.S. GAAP basis to be in the range of $188 - 233 million,
including estimated non-cash goodwill and trademark impairment charges in the
range of $170 - $205 million and restructuring, relocation and other exit
charges as described below, compared to U.S. GAAP operating loss of $12
million in the fourth quarter of 2011. Compared to the fourth quarter of 2011,
stronger banana pricing and logistical savings partially offset lower salad
results, lower average European currency exchange rates and a number of
unusual cost items in the fourth quarter of 2012, and the net results was in
line with the company's previous expectations for the quarter.

For the full year 2012, net sales were approximately $3.1 billion and the
company expects Comparable operating income (loss) in the range of $1 - 11
million and Adjusted EBITDA in the range of $64 - 74 million. This compares to
full year 2011 net sales of $3.1 billion, Comparable operating income of $78
million and Adjusted EBITDA of $139 million. The company expects full-year
operating loss on a U.S. GAAP basis to be in the range of approximately $236 -
281 million, including the non-cash goodwill and trademark impairment charges
and the restructuring, relocation and other exit charges as described below,
compared to U.S. GAAP operating income of $34 million for the full year 2011.

A reconciliation of (i) comparable operating income and (ii) Adjusted EBITDA
amounts presented above to operating income is included in a Non-GAAP
Financial Measures table below.

The company also estimates that it will have $52 million of cash at December
31, 2012, as well as $88 million of availability under its current revolving
credit facility as of December 31, 2012. Under the company's existing credit
facility, impairment charges are specifically excluded from consideration when
determining its compliance with financial covenants. The company remained in
compliance with its covenants under its existing debt facilities at December
31, 2012, and expects to remain in compliance with them.

GOODWILL AND TRADEMARK IMPAIRMENT ANALYSIS

At September 30, 2012, the company had goodwill of $175 million and trademarks
of $61 million related to its salad operations, Fresh Express, which are
subject to an annual impairment review each fourth quarter. Impairment reviews
compare fair value to carrying value for both Fresh Express and its
trademarks, and if the carrying value is greater than the fair value,
impairment is indicated. Fair values fluctuate based on market conditions and
assumptions regarding forecasted cash flows and discount rates applied to cash
flows. Based on the fourth quarter impairment analysis, the company estimates
a non-cash impairment charge to goodwill in the range of approximately $150 -
$175 million and a non-cash impairment charge to the Fresh Express trademark
of in the range of approximately $20 - $30 million. The goodwill impairment
was the result of lower operating performance of our retail salad business,
lower retail salad volumes, and lower perceived valuation multiples in the
industry. These goodwill and trademark impairment charges remain subject to
finalization.

STRATEGIC AND OPERATIONAL INITIATIVES

2012 was a year of transformation for Chiquita. In the third quarter the
company announced a restructuring plan to strategically transformitself into
a branded commodity operator. As previously announced,the companyhas already
implemented strategic and operational initiatives to focus on:

  oIts core businesses of bananas and salads,
  oReduction of its value chain costs
  oReduction of its overhead and selling, general and administrative costs
    and
  oVolume growth

These strategic initiatives were substantially completed in the fourth quarter
of 2012 and are expected to drive at least $60 million in annual savings
beginning in 2013, including $25 million for completed headcount reductions
and approximately $35 million for value chain cost reductions. The
consolidation of the company's Midwest salad processing facilities is expected
to be completed in the third quarter of 2013 andthe companyexpects to
generate $8 million of annual savings.The companyhas expanded its salad
program by providing a more comprehensive product offering in the value-added
salad market, which includes branded and private label packaged salads,
organic packaged salads and whole head lettuce. Since September 30, 2012,the
company has added approximately 5 million annual boxes of distribution growth
inits North American banana business and were awarded private label business
from certain retail grocery customers, scheduled to commence at the end of the
first quarter of 2013, representing new estimated volume of 1.6 million cases
for 2013.

Chiquita's goal is to achieve operating margins of 4 percent in Bananas and 7
to 8 percent in Salads in the next two to three years.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

The company reports its financial results in accordance with generally
accepted accounting principles in the United States of America (U.S. GAAP). To
provide investors with additional information regarding the company's results,
more meaningful year-on-year comparisons of the company's core financial
performance, and measures that management uses to evaluate the company's
performance against internal budgets and targets, the company reports certain
financial measures defined as non-GAAP measures by the Securities and Exchange
Commission. This press release uses non-GAAP measures of comparable operating
income (loss) and Adjusted EBITDA. Non-GAAP financial measures should be
considered in addition to, and not instead of, U.S. GAAP financial measures,
and may differ from non-GAAP measures and may not be compared to similar
measures disclosed by other issuers, because not all issuers calculate these
measures in the same way. The adjustments between the U.S. GAAP and non-GAAP
financial measures listed below are excluded from comparable operating income
because they are unusual and/or infrequent in nature and are consistent with
the company's internal reporting and measurement of financial performance.

                                            Quarter
                          Quarter Ended      Ended      Year Ended  Year Ended
                                          December 31, December 31,  December
                        December 31, 2012     2011         2012      31, 2011
                          Low      High                Low   High  
Operating income                                           $    $
(U.S. GAAP)             $ (233) $ (188)       $ (12)  (281) (236)      $ 34
Estimated goodwill
and trademark
impairment                   205      170            -    207   172          -
Danone JV
investment impairment          2        2            -     30    30          -
Restructuring and
exit activities                4        4            4     28    28          7
Headquarters relocation        2        2            6     19    19          6
Reserve for (recovery
of)
grower advances              (0)      (0)          (0)    (2)   (2)        32
Comparable operating
income (loss)
(Non-GAAP)               $ (20)  $ (10)       $ (2)   $1 $ 11      $ 78
Depreciation and
amortization                  17       17           16     63    63         61
Adjusted EBITDA
(Non-GAAP)                $ (3)     $7        $ 14  $ 64 $ 74     $ 139

Columns may not total due to rounding.

  oEstimated goodwill and trademark impairment: The fourth quarter of 2012
    includes an estimated $150 - 175 million non-cash goodwill impairment and
    an estimated $20-30 million non-cash impairment charge to the Fresh
    Express trademark based on the fourth quarter impairment analyses, as
    described above. These impairment charges remain subject to finalization.
    The impairment charges do not consider the company's assessment of whether
    valuation allowances may be required to reduce U.S. deferred income tax
    assets. In the third quarter of 2012, the company also impaired $2 million
    of goodwill related to a non-core healthy snacking business in Europe.
  oDanone JV investment impairment: In the third quarter of 2012, the company
    recognized $28 million charge to fully impair its 49% equity-method
    investment and to record probable funding obligations to the Danone JV,
    which are excluded from comparable results. In the fourth quarter of 2012,
    changes in the estimated funding obligations resulted in the recognition
    of an additional charge of $2 million. The company has fully accrued its
    obligations to fund the Danone JV, which are limited to an aggregate €14
    million ($18 million) without unanimous consent of the owners.
  oRestructuring and exit activities:

       oRestructuring: In August 2012, Chiquita announced a restructuring
         supporting the goal of increasing profitability in its core
         businesses, resulting in at least $60 million of annual savings
         beginning in 2013. The company recognized $2 million and $16 million
         of restructuring expenses in the fourth quarter and year ended
         December 31, 2012, respectively. These restructuring costs included
         $2 million and $11 million of severance expenses in the fourth
         quarter and year ended December 31, 2012, respectively. Planned
         restructuring activities are substantially complete, but cash
         payments related to the restructuring plan are expected to continue
         through 2014, primarily related to severance payments to the former
         Chief Executive Officer.
       oShipping reconfiguration:During the third quarter of 2011, the
         company initiated a reconfiguration of its European shipping system
         which is expected to provide more than $12 million of annualized cost
         savings, net of transition costs that include expected losses on
         subleased vessels removed from service in 2011 and 2012. Comparable
         operating income excludes a charge of $6 million in the first quarter
         of 2012 and $4 million in the fourth quarter of 2011 for net losses
         expected on certain ship sublease contracts. These sublease losses
         will not recur in 2013 since the primary leases for vessels that
         expired in 2012 were not renewed.
       oOther exit activities:In the fourth quarter of 2012, $2 million of
         estimated lease exit expense, net of estimated future sublease
         income, is excluded from comparable operating income. The full year
         2012 comparable operating income also excludes $1 million of expense
         to close a research and development facility and $4 million of
         expense from asset write-offs and severance for discontinued
         products, and other restructuring-related severance. In the second
         quarter of 2011, $2 million of severance costs to realign the
         company's salad overhead costs and to embed its global innovation and
         marketing functions into its business units is excluded from
         comparable operating income.

  oHeadquarters relocation: In November 2011, Chiquita announced its plan to
    relocate its corporate headquarters from Cincinnati, Ohio to Charlotte,
    North Carolina. Costs related to the relocation were $2 million and $19
    million in the fourth quarter and year ended December 31, 2012,
    respectively, and $6 million in the quarter ended December 31, 2011.
    Relocation costs are excluded from comparable operating income. The
    company also incurred $5 million of capital expenditures during 2012
    related to the relocation. The relocation is substantially complete, but
    the company expects remainingrelocation costand capital expendituresto
    be less than $1 million to be recognized through 2013. The company
    expects to recapture a significant portion of the relocation costs through
    state, local and other incentives through 2022. Beginning in 2013 we
    expect to generate $4 million of annual savings from the benefits of
    consolidation of locations, the consolidation of approximately 100
    positions previously spread across the U.S., lower rent and reduced travel
    expenses.
  oReserve for (Recovery of) Grower Advances: In the second quarter of 2011,
    the company reserved $32 million for the expected remaining carrying value
    of advances made to a Chilean grower. In 2012, the company recovered $2
    million of these advances through the bankruptcy process and continues to
    seek additional recoveries. The reserve and the recovery are excluded from
    comparable operating income.

Contacts:
Steve Himes, 980-636-5636, shimes@chiquita.com (Investors & Analysts)
Tiffany Breaux, 980-636-5029, tbreaux@chiquita.com (Media)

ABOUT CHIQUITA BRANDS INTERNATIONAL, INC.

Chiquita Brands International, Inc. (NYSE: CQB) is a leading international
marketer and distributor of nutritious, high-quality fresh and value-added
food products - from energy-rich bananas, blends of convenient green salads,
other fruits to healthy snacking products. The company markets its healthy,
fresh products under the Chiquita® and Fresh Express® premium brands and other
related trademarks. With annual revenues of more than $3 billion, Chiquita
employs approximately 20,000 people and has operations in approximately 70
countries worldwide. For more information, please visit our corporate web site
at www.chiquita.com.

FORWARD-LOOKING STATEMENTS

This press release contains certain statements that are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Chiquita, including:
the customary risks experienced by global food companies, such as prices for
commodity and other inputs, currency exchange rate fluctuations, industry and
competitive conditions (all of which may be more unpredictable in light of
continuing uncertainty in the global economic environment), government
regulations, food safety issues and product recalls affecting the company or
the industry, labor relations, taxes, political instability and terrorism;
challenges in implementing the relocation of the company's corporate
headquarters, and other North American corporate functions, to Charlotte,
North Carolina; challenges in implementing restructuring and leadership
changes announced in August and October 2012 including the company's ability
to achieve the cost savings and other benefits anticipated from the
restructuring; unusual weather events, conditions or crop risks; the company's
continued ability to access the capital and credit markets on commercially
reasonable terms and comply with the terms of its credit agreements; access to
and cost of financing; and the outcome of pending litigation and governmental
investigations involving our company, as well as the legal fees and other
costs incurred in connection with these items.

Additionally, the company has not finalized its financial statement closing
process for the fourth quarter and full year 2012, including its calculations
and accounting judgments related to income taxes. Because the fourth quarter
and full-year have only recently ended, the information in this press release
is preliminary and based upon information available to the company as of the
date of this press release. During the course of the company's closing
process, items may be identified that would require the company to make
adjustments, which may be material, and as a result, the estimates and rates
included in this press release are subject to risks and uncertainties,
including possible adjustments to the preliminary operating results.

Any forward-looking statements made in this press release speak as of the date
made and are not guarantees of future performance. Actual results or
developments may differ materially from the expectations expressed or implied
in the forward-looking statements, and the company undertakes no obligation to
update any such statements. Additional information on factors that could
influence Chiquita's financial results is included in its SEC filings,
including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K.

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Source: Chiquita Brands International, Inc via Thomson Reuters ONE
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