Fyffes has upgraded its profit guidance for 2007 on the back of higher selling prices and favourable exchange rates.

The fruit importer, whose stock trades on the small-cap IEX market in Dublin after the demerger of its distribution and property interests, increased its target for adjusted earnings before interest and tax to €17 million from €15 million.

The forecast excludes the company's 40 per cent share of the results of Blackrock International Land, which now operates its former property interest.

"Adjusted earnings per share, excluding the group's share of Blackrock's results, is targeted to be 4.1 cent," said Fyffes. "During the second half of the year, the impact of the further increase in bunker fuel costs has been offset by favourable exchange rates and higher average selling prices."

Goodbody analyst Liam Igoe said in a note that the earnings per share guidance was lower than the 4.9 cent he expected.

"Our forecasts had incorporated a higher assumed investment income for the group than is likely and also a somewhat lower minorities number," he said.

Fyffes said it is targeting a "mid-single digit percentage increase" in adjusted earnings before interest and tax this year on a like-for-like basis, when the anticipated positive impact of its recent entry into the US winter melon market was stripped out.

The profit target reflects "anticipated improvements" in its existing melon and pineapple operations, the benefit of more favourable average exchange rates and the likely achievement of the required increases in average selling prices.

Shares closed unchanged at €1.01.