Shares in fruit importer Fyffes have plummeted in Dublin after it lowered its profits forecast for this year due to significantly higher costs and the recent strengthening of the US dollar.
In a trading update, it said it still expected a strong increase in profits before interest and tax for the first half to €15.7m.
But it said the outlook for the second half had deteriorated in recent months due to significant increases in the cost of fruit and the stronger dollar against sterling and the euro. Fyffes said its fuel prices were still around 80% higher than a year ago.
The company said it had increased its selling prices, but prices had not risen enough to offset the increased costs.
Fyffes now expects to record losses in the second half, and is now targeting adjusted earnings before interest and tax of €12m to €15m for 2008 as a whole, compared with €17.4m in 2007.
Fyffes shares closed down 15 cent at 35 cent in Dublin this evening.
