Good day, ladies and gentlemen. And welcome to the Fresh Del Monte Produce’s Inc. Third Quarter 2015 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] I would now like to turn the call over to your host for today Ms. Christine Cannella, Assistant Vice President Investor Relations. Ma'am, you may begin.

Thank you, Ben. Good morning, everyone. And welcome to Fresh Del Monte's third quarter 2015 conference call. Joining me today are Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer; and Richard Contreras, Senior Vice President and Chief Financial Officer. This call complements our third quarter 2015 press release, we made public this morning, and you can find that release or register for future distributions by visiting our website at www.freshdelmonte.com and clicking on Investor Relations. This conference call is being webcast and will be available for replay approximately two hours after conclusion of this call. Before we start, please remember that matters discussed on today’s call may include forward-looking statements within the provisions of the Federal Securities Safe Harbor laws. Forward-looking statements involve risks and uncertainties, which are more fully described in today’s press release and our SEC filings. These risk factors may cause actual company results to differ materially. This call is a property of Fresh Del Monte Produce. Redistribution, retransmission, or rebroadcast of this call in any form without our written consent is strictly prohibited. Let me turn this call over to Mohammad.

Thank you, Christine, and good morning, everyone. Thank you for joining us. We are pleased to report that for the third quarter of 2015 Fresh Del Monte's net sales increased 6% to $936 million compared with the $885 million we reported last year. We also generated adjusted EPS of $0.37 compared with EPS of $0.35 in the third quarter of 2014. The increase in net sales was across all of our business segments driven by higher volume and increase demand and higher selling prices in several of our value added product lines. We credit this strong performance to our strategy and progress we have made in transforming our company to a more resilient diversified company. A company that isn’t just dependent on two or three products, markets or customs One of the key drivers [indiscernible] during the quarter was our global fresh cut business. We grew volume by 30% and stays by 32% year-over-year. We have an excellent global fresh up footprint as proven by our expanding product line and growing worldwide presence. We work closely with our customers to find the optimal mix of fresh cut products that enable us to achieve higher sales at highest points and margin expansion. We also continue to streamline our fresh cut business through automation and enhancements in our production and techniques. While already the global markets leaders we have just began to tap this strength and market potential for worldwide demand for healthy ready to eat fruits and vegetables. I believe we are well positioned to extend our products and market presence to increase market share in the coming quarter. We delivered strong sales growth at our avocado businesses during the quarter. Driven by a 52% increase in volume compared with the prior period. Over the past few years avocados have become…

Thanks Mohammad and good morning. For the third quarter of 2015, on a comparable basis excluding asset impairment and other charges, we reported earnings per diluted share of a $0.57 compared with earnings per diluted share of $0.35 in the prior year. Net sales were $936 million compared with $885 million in the third quarter of 2014, and gross profit was $83 million compared with gross profit of $74 million in the prior year. In addition we reported operating income for the third quarter of $36 million compared with $30 million in the third quarter of 2014 and net income for the third quarter was $30 million compared with $20 million in the prior year. In our banana business segment during the third quarter net sales were $425 million compared with $424 million in the third quarter of 2014 primarily driven by higher sales volume in the Middle-East and North America. The increase was partially offset by lower industry supply out of the Philippines. Overall volume was 1% higher compared with last year’s third quarter. Worldwide pricing decreased to 1% or $0.13 per box to $14.64 primarily due to unfavorable exchange rates. Gross profit for the third quarter of 2015 was $21 million compared with gross profit of $23 million a year ago. Total worldwide banana unit cost was in line with last year's third quarter. In our other fresh produce business segment, net sales increased $49 million to $420 million, compared with $371 million in the third quarter of 2014, and gross profit increased $8 million to $49 million compared with $49 million in the prior year. In our gold pineapple category, net sales decreased to $11 million to a $119 million compared with $130 million in the prior year as a result of lower sales volume in Europe,…

Thank you. [Operator Instructions] And our first question comes from the line of Mark Williams of Athlos Research. Your line is open. Please go ahead.

Good morning and thank you. So Mohammad, the Middle East surprised me on a positive side this quarter, can you talk about what you're seeing improvement there in sales and margin, particularly the pricing headwinds in places like Turkey and the political turmoil broadly in that market?

Actually, [the need] is performing -- as per our target and our plan, the only issue that we have are shortage of bananas from Philippines during -- I would say between August and September and first part of October which has affected the turnover in sales. Pricing had been very strong during that period. As far as all the other businesses that we are carrying there, they are all doing extremely well as a matter of fact. We have diversified as well into agriculture into the [indiscernible] which add value to our end product. So, all in all things are moving very well in the [indiscernible]. As far as the political situation there, really has not impacted us in anyway expect in Iraq and Syria where we used to sell large volumes of that mainly bananas into these markets and due to the some actions due to the political instability there, it's mostly due to the oversupply of bananas in the last couple of months that have destroyed the markets there. We believe that within the next four to six weeks this should reverse, the markets will improve there. In spite of the war and in spite of the fighting, they still consume bananas and they still buy fruits. And being in the market there and our physical presence in these areas gives us additional advantage and leverage to market a lot of fruits in a reasonably good way.

And as the first supply normalizes would you expect your sales and margins in the Middle-East to be stronger or weaker in the next quarter?

Well I cannot predict now. As we speak now the markets are weak because of oversupply situation is from Central America or from the Philippines. But it is normal at [indiscernible] has been growing for years and at that time of the year we hope that by middle of next month this situation normalizes and they go back to their normal pricing which is quite favorable.

Okay, thank you. And another are that really surprised during the quarter is how strong your other fresh-cut sales were particularly with the growth in some of your newer products like Tropicana's fresh-cut, is that coming from your own capacity or are you just kind of seeing some room to expend distribution and kind of utilize some capacity on your shifts.

Well most of our actually plans right now we hope to cement our production and that's why we are now expanding existing production spaces in some of the actual existing plans and we have plans to expand our geographic presence in North America, Europe and [Indiscernible] as far as new production facilities and expansion of our capacity. So you will see a continuous growth into this area going forward and it's just a method of time to catch up with more capacities, so we are very confident in that area, we have become very solid as the major player in this field and I feel very confident that we will accomplish our goals.

And so how would you characterize you’re level of vertical integration and both fresh and avocados?

Vertical integration?

Yes. As most of your avocados on a contract basis and it's just same for fresh-cut or how much of that production do you own?

No. The avocados are of mainly are long term contracts with [indiscernible] specially in Mexico and other countries Peru and Chile, but let's have a degree into these two countries, the major volumes come from Mexico and California as well. Actually we are expanding our customer base and our leverage is with our ability to deliver to customers on a timely basis at a very convenient space, but we are very close to our customers and that's what makes us have this leverage and advantage.

Right, yes. This is the first time I think I noticed you disclosing avocados release. What kind of a run-rate is that business on right now?

I'm sorry.

The avocado business, I think this is the first time I saw you disclose it in the release. I'm sure you talked about getting more aggressive there, how big is that business at this point?

Yes. We don’t disclose within other fresh produce, but it is growing and that's why we started reporting it filing it out separately.

Okay, alright. [Indiscernible] in future quarters

I mean obviously the size -- the sales were $46 million this quarter.

This is seasonally high quarter out of Mexico I would assume?

I'm sorry.

Is this seasonally high quarter for Mexican, I guess imports into the U.S.?

No. This is normal, it is the steady actually. The volumes are there, we are expanding our market presence and sharing the market increased demand, so it's from many aspects in terms of how this business was growing with us and don't forget that we do a lot of [lightening] for our customers which is a very special service, which I think it's making a big change into the customer perception, that you'll go to the super market and you can find an avocado that you can take home and eat right away rather than wait a few days to get it ripen at home, so that's a big difference and we have this technology and the ability because it's a very sensitive product so we have to do well taking care of and do the right thing to have it right to the customer. And I think our customers right now realize that Fresh Del Monte has that capacity and ability to deliver.

Is that new, that technology, it's the opposite technology [to finance] where you accelerate?

Yes, it's a different. We use the same rule, but it's a different way of handling that.

Okay, and is that -- you had that for a while now?

We've been doing that for a while. Now it's picking up quite significantly and I think it's making a big difference.

Okay. Thank you and just lastly, [indiscernible] today, how did they index compared to that [segment] margin structure?

I'm sorry, we couldn't hear clearly, say that again please.

Avocados, how do they index compared to other [indiscernible] margins?

I mean, I would say they are in the top half; they are in the higher end of those fresh category.

Okay, great. Moving on to bananas now, I think fruit cost is higher for you and some of the pressure on pricing, I was partly surprised that margins there, is that -- can you talk about how those [up] this quarter?

The fresh cart?

No, I'm sorry, bananas.

I couldn't hear you well to be honest with you Mark, so if you can repeat it please?

I'm sorry. The banana margin, I thought it would be -- you had falling prices and rising cost, it held up pretty substantially, can you give I guess some detail on how on what you did to mitigate some of that pressure on bananas between the cost and the prices and some of the euro headwind.

Volume was increasing.

Okay. And which markets in particular, are you gaining share?

Middle East and North America was where volume was higher in this quarter.

Okay. So bunker fuel specifically was down, and looks like it was down a little bit more than Q2 but still [indiscernible] stock market, why is that not flowing through I guess more to the gross margin line [indiscernible] offsetting that?

You know that the bunker usually takes time to follow up the market. I mean, if the price of [porridge] today is let's say $45, product companies [indiscernible] do not reflect that the pricing on a spot basis but maybe one month or 45 days later because of the reserve and in the spots that they have inventory that they have so, usually it's not right that you see it right away if price of [indiscernible] goes down that we see that reflected for the bunker.

And remember in North America, we have surcharges to customers, so it sort of offsets to an extent.

Okay. And speaking on North American pricing, I think, we are starting to get into contract season; can you just give some detail on how that's looking?

We're doing [a lot] improve our pricing for sure and hopefully the market will cooperate to us but definitely we're trying to improve in order to mitigate our increased cost.

Okay, and what do you see on the supply side for North America, seems like there is lot of fruit [available].

At that time of the year, you have a lot of fruit available but I think the key of the excess fruit is almost comes to an end by the end of this month, there will be no more excess in the market in the production area and then we'll see the market of course improved, but that takes of course few weeks to have all the fruit that was on the water being cleared out of the market. So, I believe by end of December the market should turn around and start to becoming more normal pattern of increased pricing. I'm talking here as far as both Europe and the other markets in the world. North America mainly compared to fruits so we are influenced by the excess fruit, the excess fruit really helps Europe, Asia and the [indiscernible] region in these markets and these markets should, once the oversupply is cleared, these markets come back to their normal level of pricing, which really is good pricing.

Okay, great and so my final question is related to the balance sheet, obviously below one times leverage did some share repurchase this quarter and with the CapEx now that you have, you have obviously of lot of cash, you talk about getting more aggressive on avocados. I noticed that a competitor made a land investment in Costa Rico during the quarter, so can you just talk about you used up your balance sheet, I mean as a cash flow?

As you said, we have already spent [indiscernible] $90 million and we're spending a lot of projects now on -- and it's undergoing. We are looking at positions of land and agriculture new affinities and amenities in South America as well as North America, so we are looking at how can we get the whole idea of Fresh Del Monte which you can see today is transforming the company from a banana company to a much wider product line and added value products which gives us consistent business with consistent margins with high added value product with high margins, so that's the kind of strategy, that's the kind of direction that Fresh Del Monte is going to and we are going to achieve these results as we go forward.

Thank you. [Operator Instructions] And I'm showing no additional questions. I'd like to hand the conference back over to Mr. Abu-Ghazaleh for any closing remarks.

Thank you very much. I appreciate whoever is on the call, and thank you very much for participating and hope to talk to you about our revenues on our next conference call. Have a good day.

Ladies and gentlemen thank you for your participation in today’s conference. This does conclude the program and you may all disconnect. Have a great rest of your day.