Dole 2000 Annual

8
Annual Report 2000

Transcript of Dole 2000 Annual

�Annual Report 2000

(in millions, except per-share data) 2000 1999 1998 1997 1996

Revenue $ 4,763 $ 4,794 $ 4,189 $ 4,065 $ 3,575

Net income $ 68 $ 49 $ 12 $ 160 $ 89

Diluted net income per common share $ 1.21 $ 0.85 $ 0.20 $ 2.65 $ 1.47Diluted average common shares outstanding 56 57 60 60 60

Total assets $ 2,845 $ 3,034 $ 2,915 $ 2,464 $ 2,487

Capitalization

Short-term debt $ 45 $ 39 $ 36 $ 14 $ 22Long-term debt 1,136 1,286 1,116 755 904Minority interests 45 49 57 38 30Common shareholders’ equity 555 532 622 666 550

Total capitalization 1,781 1,906 1,831 1,473 1,506

Book value per common share $ 9.93 $ 9.53 $ 10.49 $ 11.10 $ 9.18Common stock price:

End of year 16 3/8 16 1/4 30 45 3/4 34High 20 1/2 33 13/16 57 1/8 49 5/8 43 1/2

Low 1115/16 13 13/16 28 5/16 33 3/8 32 7/8

Annual cash dividends per common share 0.40 0.40 0.40 0.40 0.40

NOTE: Net income for 2000 includes a pre-tax charge of $46 million, net insurance proceeds of $43 million and a pre-tax gain of $9 million on assets sold. Net income for 1999 includes a pre-tax charge of $48 million and net insurance proceeds of $28 million. Net income for 1998 and 1996 includes pre-tax charges of $120 million, net of $23 million of insurance proceeds, and $50 million, respectively.

4,76300

3,57596

4,06597

4,18998

4,79499

32900

33896

37297

32898

30899

55500

55096

66697

62298

53299

REVENUE

(in millions)

CASH FLOW

(EBITDA* in millions)

SHAREHOLDERS’ EQUITY

(in millions)

•EBIT •Depreciation & Amortization

* Before special charges in 2000, 1999, 1998 and 1996, net insurance proceeds in 2000, 1999 and 1998, and a net gain on assets sold in 2000.

Dole Financial Highlights

To Our Shareholders

ull year 2000 net income from ongoing

operations, which excludes a business

downsizing charge, one-time gains from

asset sales and Hurricane Mitch insurance

proceeds, was $72.9 million, or $1.30 per

share, reflecting a 9% improvement in earnings per

share as compared to full year 1999 net income from ongoing

operations of $67.9 million, or $1.19 per share. Revenues for 2000

were slightly down at $4.76 billion versus $4.79 billion for 1999. Cash

flow from ongoing operations (EBITDA) in 2000 was $328.8 million

compared with $307.6 million for 1999.

Operations - While an improvement over 1999, our 2000 results weredisappointing. Earnings were down from our original plan due to a reduction in ourbanana business profits largely as a result of the drop in the euro to U.S. dollarexchange rate, a dramatic rise in fuel rates during the year, and a continuedoversupply of bananas in the market. Additionally, Dole’s flower operations havenot yet achieved the benefits of a full consolidation of the four companiespreviously acquired in that industry. Cost reduction programs have been put inplace in both our banana and flower businesses to improve performance in 2001.Our other businesses all performed quite well and are expected to continue to dowell in 2001.

Fresh Fruit - While banana pricing is not expected to improve in 2001, we have taken significant measures to reduce costs in this business including the areas ofproduction, shipping, selling, marketing, distribution and G&A activities. Webelieve these measures should result in meaningful improvement in the bananabusiness results in 2001.

Fresh Vegetables - Our fresh vegetables business posted record earnings in 2000 asa result of continued growth in the fresh-cut salads business and favorable pricing in the commodityvegetables business. Our fresh-cut salads business grew approximately 20% in 2000 and achieved a twelve-week market share of 37.2% by the end of the year. During 2001, we anticipate continued growth in ourfresh-cut salads business and a return to more normal pricing levels in our commodity vegetables business.

�Dole’s PremiumSelectTM Pineappleis sweet in taste andhigh in vitamin C.Grown in the Tropics,it is distinguished by its golden-yellow high shell color.

David H. MurdockChairman and Chief Executive Officer

F

Packaged Foods - Our packaged foods business also performed well and is expected to continue its growth in 2001. Our traditional canned pineapple business maintained its approximate 50% market share in North America, and our new FRUIT BOWLS® plastic cup introduction achieved sales of $70million in its first full year of roll out, an approximate 30% market share. These new products offer potentialfor future revenue and profitability growth.

Beverage - Our beverage business in Honduras returned to more normalizedconditions in the wake of Hurricane Mitch. As previously reported, we arepursuing a possible sale of this business. Proceeds from such a sale would beprimarily used to pay down debt.

Flowers - Our fresh-cut flowers business was only slightly profitable in 2000,but this was an improvement over the $5 million loss incurred in 1999. In 2001,we are working toward the consolidation of our Miami-based flowers operationsinto a new distribution facility which will be located near the Miami airport.This should improve costs, quality and service to our customers.

Financing Activities - In July 2000, we entered into a $250 million, 364-dayrevolving credit facility. Agents in the facility are Bank of America,Commerzbank and The Bank of Nova Scotia. Also in July, we repaid $225million, of our 6.75% notes which matured on July 15, 2000. These notes wererefinanced under our existing $400 million, five-year revolving credit facilityand the new 364-day facility.

Management Changes - In early 2001, Lawrence A. Kern was promoted toPresident and Chief Operating Officer and was appointed to the Board ofDirectors. Mr. Kern joined Dole in 1993, most recently serving as President of our worldwide freshvegetables and non-tropical fresh fruit operations. David A. DeLorenzo, former President and ChiefOperating Officer, was appointed Vice Chairman of the Board of Directors and will have a significant rolein guiding strategic initiatives aimed at enhancing shareholder value. Mr. DeLorenzo has served Dole invarious executive capacities since 1970. In October 2000, C. Michael Carter joined us as Vice President,General Counsel and Corporate Secretary.

We express our appreciation to our shareholders, employees, customers and suppliers for their continuedsupport and confidence.

Sincerely,

David H. MurdockChairman and Chief Executive Officer

�Dole Special Blendsare the fastest growing line of fresh-cut salads, combining over twentytypes of lettuces and vegetables in fourteen different salads to satisfyany taste preference. Dole offers a broad line,with both conventionaland organic varietiesavailable.

Dole Fresh VegetablesDole ArtichokesDole AsparagusDole Bell PeppersDole BroccoliDole Brussels SproutsDole Butter LettuceDole CarrotsDole CauliflowerDole CeleryDole CilantroDole Dry OnionsDole EndiveDole EscaroleDole Green Leaf LettuceDole Green OnionsDole Iceberg LettuceDole Idaho PotatoesDole RadishesDole Red Leaf LettuceDole Romaine LettuceDole Sugar PeasDole Tomatoes

Dole Fresh-Cut Vegetables

Dole All American Salad KitDole American Salad BlendDole Chopped

Romaine SaladDole Classic Cole SlawDole Classic Greek Salad KitDole Classic Iceberg SaladDole Classic Romaine SaladDole Caesar Salad KitDole Light Caesar Salad KitDole Creamy Garlic Caesar

Salad KitDole Romano Salad KitDole Sunflower Ranch

Salad KitDole European Salad BlendDole French Salad BlendDole Greener Selection® SaladDole Italian Salad BlendDole Just Lettuce SaladDole (Mediterranean) Leaf &

Escarole Salad Blend Dole Mediterranean Salad KitDole Organic Baby LettucesDole Organic Baby SpinachDole Organic Hearts of

Romaine MixDole Organic Spring Mix

with HerbsDole Peeled Mini-CarrotsDole Romaine Salad BlendDole Shredded CarrotsDole Shredded LettuceDole Shredded Red CabbageDole Spring Mix Salad BlendDole Triple Cheese Salad KitDole (Tuscany) Butter Lettuce

Salad BlendDole (Verona) Field Greens

Salad BlendDole Very VeggieTM

Salad Blend

Pascual HermanosDole Santa (Grape) TomatoesDole Cherry TomatoesDole On-Vine TomatoesDole Plum TomatoesDole Little Gem Baby LettuceDole Rucola SaladDole Mini Leaf SaladDole Spring Onions

Dole Dried Fruit & NutDole Dates Chopped in

Resealable BagsDole CinnaRaisins in

Resealable BagsDole Golden Seedless RaisinsDole Dates Pitted in

Resealable BagsDole Pitted Prunes CanisterDole Pitted Prunes in

Resealable BagsDole Seedless Raisins CanisterDole Seedless Raisins in

Resealable BagsDole Seedless Raisins

Mini SnacksDole Seedless Raisins

Six Packs

SamanDole Golden RaisinsDole Mixed Fruit & NutDole Pine NutsDole Soelia PistachiosDole Soft ApricotsGuyennoise Prunor

Pitted PrunesGuyennoise Prunor

Whole PrunesJA Whole DatesJA Whole PrunesSoelia Blanched Whole

AlmondsSoelia Dried ApricotsSoelia Dried FigsSoelia Pitted PrunesSoelia Sliced Thin AlmondsSoelia Whole PeanutsSoelia Whole PrunesDole Walnut HalvesWhole Deglet Nour Dates

Dole Fresh FruitDole ApplesDole ApricotsDole AvocadoDole BananasDole Banana Puree Dole BlackberriesDole CantaloupeDole CherriesDole ClementinesDole CoconutsDole CranberriesDole GrapefruitDole Gift BasketsDole GrapesDole Honeydew MelonDole KiwiDole LemonsDole Limes

Dole LycheesDole MandarinsDole MangoesDole Morado BananaDole Native BananaDole NectarinesDole OrangesDole PapayasDole PeachesDole PearsDole PersimmonsDole PineappleDole Fresh-Cut Pineapple

ChunksDole Fresh-Cut Pineapple

SpearsDole Fresh-Cut Pineapple

CylindersDole Plantains Dole PlumsDole PomegranatesDole RaspberriesDole SatsumasDole StrawberriesDole Super Sweet BananaDole TangelosDole TangerinesDole YuccaIndividually Quick Frozen

(IQF)Dole BananasDole MangoDole Pineapple

Dole Packaged FoodsDole Aloe Vera (Solid)Dole Apricot HalvesDole Apricot Snack CupDole Apricots in Juice

or SyrupDole Crushed Pineapple

in Juice or SyrupDole Deciduous Fruit

Cocktail in Juice and SyrupDole Fruit Bowls – Diced

PeachesDole Fruit Bowls – Mixed FruitDole Fruit Bowls – Pineapple

TidbitsDole Fruit Bowls – Tropical

Fruit SaladDole Fruit Bowls – Mandarin

Orange SegmentsDole Fruit Festival Snack CupDole Fruit in Gels –

Pineapple in Lime GelMandarin Orange in

Orange GelPeaches in Strawberry Gel

Dole Guava HalvesDole Guava in SyrupDole Longans in SyrupDole Longans Snack CupDole Lychees in SyrupDole Lychees Snack CupDole Mandarin Orange

Fruit CupsDole Mandarin Orange

SegmentsDole Mandarin Orange

Segments, Easy Open

Dole Mango Cubes Snack Cup

Dole Mango Juice DrinkDole Mango Slices in Blended

Juice or SyrupDole MushroomDole Nata de Coco in SyrupDole Nata de Coco

with Jackfruit Snack CupDole Papaya in SyrupDole Peach Halves in SyrupDole Peach Slices – Easy OpenDole Peach Snack CupDole Peaches in Juice

and SyrupDole Pear Snack CupDole Pears in Juice and SyrupDole Pine Orange

Banana JuiceDole Pineapple Chunks

in Juice or SyrupDole Pineapple ConcentrateDole Pineapple Cubes

in SyrupDole Pineapple Fun Shapes –

CosmicDole Pineapple Fun Shapes –

Sea CreaturesDole Pineapple Grapefruit

Juice DrinkDole Pineapple JuiceDole Frozen Pineapple JuiceDole Pineapple Juice DrinkDole Pineapple Lychee

Juice DrinkDole Pineapple Mandarin

Orange Banana JuiceDole Pineapple Orange JuiceDole Pineapple Orange

Juice BoxDole Pineapple Orange

Juice DrinkDole Pineapple Orange

Raspberry Juice BoxDole Pineapple Orange

Strawberry JuiceDole Pineapple Pink

Grapefruit DrinkDole Pineapple Slices

in Juice or SyrupDole Pineapple Snack CupDole Pineapple Snack Wedges,

Easy OpenDole Pineapple Strawberry

Juice DrinkDole Pineapple Tidbits

for PizzaDole Pineapple Tidbits

in JuiceDole Pouch – Pineapple

Tidbits in SyrupDole Rambutan in SyrupDole Rambutan Snack CupDole Rambutan with

Pineapple Snack CupDole Red Papaya Chunks

in Light SyrupDole Tomato SauceDole Tropical Fruit Cocktail

in Juice and Syrup

Dole Tropical Fruit Cocktail in Syrup with Passion

Fruit JuiceDole Tropical Fruit Juice BoxDole Tropical Fruit SaladDole Tropical Fruit Salad,

Easy OpenDole Tropical-Pineapple

Juice BlendDole White AsparagusDole Yellow Papaya Chunks

in SyrupSeasons Pineapple JuiceSeasons Tropical Fruit MixSun Giant Pineapple Slices

in Juice or SyrupSun Giant Pineapple Chunks

in JuiceSun Giant Crushed Pineapple

in JuiceSun Giant Pineapple Juice

Dole Fresh FlowersAgapanthusAlstroemeriaAster ButterflyAster MatsumotoAster MontecasinoBells of IrelandBouvardiaBupleurumCallasCampanulasCarnationsChinese CarnationsCremonsDelphiniumFarm BouquetsFootball MumsFreesiaGerberaGerspiderGypsophilaKangaroo PawsLeatherleafLiatrisLiliesLimoniumLisianthusMillion Stars GypsophilaMiniature CarnationsMonk’s HoodNerinesPomponsQueen Anne’s LaceRoses (Hybrid Tea)Roses (Micro)Rover MumsSnapdragonsSolidagoSolidasterSpider MumsSpray RosesStaticeStockStrawflowersSunflowersSweetheart RosesTracheliumTree FernYarrow

Dole Worldwide Product List

Dole Food Company, Inc.

Directors

Mike Curb 1, 3

Chairman

Curb Records, Inc.

David A. DeLorenzoVice Chairman

Dole Food Company, Inc.

Richard M. Ferry 1, 2

Chairman

Korn/Ferry International

(international executive search firm)

James F. Gary 2, 3

Chairman Emeritus

Pacific Resources, Inc.

Lawrence A. KernPresident and Chief Operating Officer

Dole Food Company, Inc.

Zoltan Merszei 2, 3

Former Chief Executive Officer,

President and Chairman

The Dow Chemical Company

David H. Murdock 1

Chairman of the Board and

Chief Executive Officer

Dole Food Company, Inc.

Dole Food Company, Inc.

Officers

David H. MurdockChairman of the Board and

Chief Executive Officer

David A. DeLorenzoVice Chairman

Lawrence A. KernPresident and Chief Operating Officer

Kenneth J. KayVice President and

Chief Financial Officer

C. Michael CarterVice President, General Counsel and Corporate Secretary

Patrick A. NielsonVice President – International Legal andRegulatory Affairs

George R. HorneVice President – Human Resources

Roberta WiemanVice President

James A. KennedyVice President – Taxes

Gil BorokController and Chief Accounting

Officer

Beth PotilloTreasurer

Dole Food Company

Operating Division Officers

Paul CuyegkengPresident – Dole Asia

William F. FeeneyPresident – Dole Europe

Juergen SchumacherPresident – Dole Latin America

Peter M. NolanPresident – Dole North America

Eric M. SchwartzPresident – Dole Worldwide Fresh Vegetables

Roberto ZacariasPresident – Dole Honduran Beverage

Lorenzo de la TorrePresident – Dole Fresh Flowers

Michael J. CavalleroPresident – Dole North America

Tropical Fresh Fruit

1 Executive, Finance and Nominating Committee2 Audit Committee3 Compensation and Benefits Committee

Directors and Officers

�Dole grows over 145varieties of roses, whichis only one of over 40flower types offered,helping make Dole theleading grower, mar-keter, and distributor of floral products.

DOLE® IS A REGISTERED TRADEMARK

OF DOLE FOOD COMPANY, INC.

©2001 DOLE FOOD COMPANY, INC.

ALL RIGHTS RESERVED.

The Company

Founded in Hawaii in 1851, Dole Food Company, Inc. is the largest

producer and marketer of high-quality fresh fruit, fresh vegetables

and fresh-cut flowers, and markets a growing line of packaged foods.

The Company does business in more than 90 countries and employs

approximately 61,000 full-time people.

Corporate Headquarters

One Dole Drive, Westlake Village, CA 91362 (818) 879-6600

Company and Shareholder Information

�Auditors

Arthur Andersen LLP

633 West Fifth Street

Los Angeles, CA 90071

Securities Transfer and Dividend

Disbursement Agent

American Stock Transfer

& Trust Company

59 Maiden Lane

New York, NY 10007

(800) 937-5449

Internet address: www.amstock.com

Dividend Information

A cash dividend of $0.10 per common

share was declared in each quarter

of 2000 for a total annual dividend of

$0.40 per share. Dole Food

Company, Inc. does not have a

dividend reinvestment plan.

Investment Community Inquiries

Members of the investment community

should direct inquiries to:

Office of the Chief Financial Officer

Dole Food Company, Inc.

One Dole Drive

Westlake Village, CA 91362

(818) 879-6600

E-mail address:

[email protected]

Shareholder Inquiries

For a copy of the Annual Report on

Form 10-K, or for other information

requests, shareholders should contact:

Office of the Corporate Secretary

Dole Food Company, Inc.

One Dole Drive

Westlake Village, CA 91362

Telephone (818) 879-6814

Facsimile (818) 879-6615

E-mail address:

[email protected]

Dole’s Annual Report on Form 10-K

is available on the internet at

http://www.dole.com

Stock Exchange

Dole Food Company, Inc.’s common

stock (DOL) is traded on The New York

and Pacific Stock Exchanges

Internet Addresses

http://www.dole.com

http://www.dole5aday.com

�Dole® Fruit Bowls® are bite-sized pieces of 100 percent natural fruit, convenientlypacked in clear, plastic bowlswith easy-to-open, peel off lids.Fruit Bowls‚ are available infive varieties: Diced Peaches,Mixed Fruit, Pineapple, Tropical Fruit, and Mandarins.This innovative new line ofproducts captured a 30% shareof the $200 million Fruit Cup category in 2000.

Available in the fall of 2001,The Encyclopedia of Foods: A Guide to Healthy Nutritionis a definitive resource on what to eat for maximum health. The book is part of Dole’s ongoing nutrition education program and provides a comprehensive, in-depth reviewof the role of nutrition in ourlives by nutrition experts fromMayo Clinic, University of California Los Angeles, andDole Food Company, Inc.

Dole Food Company, Inc.�www.Dole.com