Fruit distribution company Fyffes has said its performance in the first half of 2006 is in line with expectations.

In a trading statement issued to the Irish Stock Exchange yesterday, the company said its performance for the full year of 2006 remains in line with its previous announcements.

The company is experiencing deteriorating market conditions through the second quarter.

It signalled that the adjusted profit before tax for the six months to the end of June was expected to be in the range of €37 million to €39 million.

It reported pre-tax profits of €60.3 million in the same period last year.

In May, Fyffes shares fell sharply after it warned that high oil prices would knock around €9m off its expected profits for this year.

The company said the increase in the cost of shipping fuel had been higher than expected and was not being recovered by charging higher prices.

Yesterday, the statement said that Fyffes remained focused on enhancing shareholder value by developing its business, in particular through further strategic acquisitions and alliances.

The group has invested more than €20 million, including debt acquired, on a number of acquisitions in the current year.

Fyffes is due to report its interim results in September. In Dublin yesterday, Fyffes shares were unchanged at €1.36.