Avocado costs hurt Calavo Growers 3Q profit

Profit for the quarter ended July 31 fell to $1.4 million, or 10 cents per share, from $2.2 million, or 15 cents per share last year.

Revenue rose 6 percent to $96.9 million from $91.3 million a year ago.

Calavo said profit fell because of the higher cost of Mexican-grown avocados, which hurt margins in both fresh and processed-product operations.

"A significant factor in Calavo's fiscal third quarter performance and a principal differentiator in year-over-year operating results was a short supply of Mexican-grown avocados that resulted in sharply higher costs for fruit sourced from that region," said Lee E. Cole, chairman, president and chief executive, in a statement.

He said the costs are beginning to lessen, however, which likely will not help fourth-quarter results but is expected to boost gross margins in fiscal 2009.