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MONEY SNAPSHOT CHIQUITA'S PROFITS ARE FRUITFUL AND COME IN BUNCHES
(MONEY Magazine) – Since World War II, store owners in Eastern Europe might have echoed Eddie Cantor's famous ''Yes, we have no bananas!'' But with Communism out, all that is changing. ''Fresh fruit has become an affordable luxury, and Eastern Europeans are lining up around the block to buy it,'' says Timothy Ramey, food analyst at County NatWest Securities. The supplier of most of this produce is $4.2 billion Chiquita Brands (NYSE, $24), the leading American banana purveyor. Chiquita already controls 45% of the $1.8 billion Western European banana market, even though Britain, France, Portugal and Spain are closed to the firm because of exclusive contracts to import higher-priced fruit from their former colonies. Those barriers will fall in 1992, and Ramey estimates Chiquita's sales to the four countries could reach $500 million by 1995. That should help boost earnings growth to 18% a year. He says the stock will hit $37 within 12 months. |
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