SOURCE: Triple Point Technology

Triple Point Technology

December 10, 2009 04:00 ET

Chiquita Selects Triple Point to Manage Hedge Accounting

Food and Beverage Companies Choose Triple Point to Manage Cost Volatility for Raw Materials and Fuels

WESTPORT, CT--(Marketwire - December 10, 2009) - Triple Point Technology®, the leading provider of multi-market commodity and enterprise risk management software solutions, announced today that Chiquita Brands International Inc. has selected Commodity XL™ for Hedge Accounting, Fair Value Disclosure and FAS 161.

Chiquita is a leading international marketer and distributor of high-quality fresh and value-added food products including bananas, fruits and green salads. With annual revenues of nearly $4 billion, Chiquita has operations in more than 80 countries worldwide.

More of the world's population is joining the 'consumer' bracket, driving demand for raw materials and fuels. As commodities become a larger and more volatile part of the supply chain cost structure, new industries are choosing Triple Point for the same sophisticated solutions it has traditionally supplied to energy and commodity trading companies. Notable clients in the consumer products, agricultural and manufacturing industries that have recently selected Triple Point include Unilever, The Campbell Soup Company, Gavilon (formerly ConAgra Trade Group) and Incitec Pivot Ltd.

Chiquita's core ships utilize 300,000 metric tons (MTs) of bunker fuel annually. A 1% move in the fuel rate would represent a $1.3MM impact to its cost in the absence of hedging -- in 2008, the average price volatility of bunker fuel was over 12%. Chiquita uses derivatives to hedge price movements in bunker fuel and must comply with Federal Accounting Standard (FAS) 133 to receive beneficial hedge accounting treatment. The company was seeking improved efficiency over its hedge accounting processes. Commodity XL enables Chiquita to manage exposure and comply with strict audit and reporting requirements under FAS 133, 157 and 161.

"Brand new markets are seeking Triple Point solutions to drive cost volatility from the supply chain and preserve margins," said Michael Schwartz, chief marketing officer, Triple Point. "Triple Point's mission has always been to help companies profitably buy, sell and move commodities. Growing market share across industries facing large exposure to commodity inputs -- including food, heavy manufacturing and transportation -- affirms Triple Point's leadership position."

Chiquita selected Triple Point's Treasury and Regulatory Compliance solution suite including Commodity XL™ for Hedge Accounting, Fair Value Disclosure and FAS 161.

Treasury and Regulatory Compliance Solution Suite

Triple Point's Treasury and Regulatory Compliance solution suite supports a comprehensive risk management program that enables firms to balance optimal economic benefit, risk management and stable financial statements. In a stringent and unforgiving regulatory environment, Triple Point's treasury and regulatory compliance platform provides the systems and tools required to comply with Hedge Accounting regulations FAS 133, IAS 39, CICA 3865, AASB 139, SAS 133 and FAS 161, and Fair Value Disclosure regulations FAS 157 and IFRS 7.

About Triple Point Technology

Triple Point Technology® is the leading global provider of multi-market commodity and enterprise risk management software solutions. Triple Point's Commodity XL profitably integrates physical and financial markets on a real-time, service-oriented architecture (SOA) platform for commodities including power, oil, gas, coal, emissions, base and precious metals, agricultural products, biofuels and freight. In addition to Triple Point's award-winning commodity and energy trading software being used by more than 25 percent of both Global 500 commodity trading and Global 500 energy companies, other organizations with large raw material and energy exposure, including consumer products (CP), discrete manufacturers and big box retailers, are quickly adopting the Triple Point solution. Named to the Deloitte Technology Fast 50 for ten straight years, Triple Point added to its record-breaking organic growth in 2008 with the acquisitions of INSSINC, the leading provider of hedge accounting and fair value level software and ROME Corporation, the industry leader in credit risk software solutions. Triple Point, headquartered in Westport, Connecticut, USA, was founded in 1993 and serves clients from nine development and support centers located around the globe. More information is available at

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