Chiquita Brands shares drop on 3Q expectations

Shares of Chiquita Brands International Inc. dropped Monday after the banana and fresh fruit producer said it now expects to report a "significant loss" in its third quarter due to higher costs.

Shares dropped $6.60, or 28.3 percent, to $16.73 in very heavy afternoon trading.

Before the market opened, the company said its product supply costs have increased substantially just as prices have begun to moderate in Europe.

Volumes for the past two months have also either been flat or down because of bad weather in Central America and Ecuador, which has constrained supply and increased sourcing costs.

Banana prices, meanwhile, rose in every market.

Shares of fresh fruit producer Fresh Del Monte Produce Inc. also dropped on the news, falling $6.62, or 20.8 percent, to $25.26 in heavy trading.