Dean Foods Posts Lower Quarterly Profit, Higher Sales

Dean Foods, the largest U.S. dairy processor and distributor, said on Tuesday second-quarter profit fell, hurt by rising raw milk prices and an oversupply of organic milk.

Income from continuing operations dropped to $28.2 million, or 21 cents per share, from $74.8 million, or 53 cents a share, a year earlier.

On an adjusted basis, the company earned 30 cents per share, compared with 55 cents a year earlier.

Analysts were expecting adjusted quarterly earnings of 31 cents per share, according to Reuters Estimates.

Net sales rose 15% to $2.8 billion, as Dean passed higher commodity milk costs on to consumers.

WhiteWave Foods sales rose to $325 million from last year's $301.8 million, driven by higher sales of its Horizon Organic milk, International Delight and Land O'Lakes brands.

Dean said it expects full-year earnings at the low end of its current outlook of $1.52 to $1.58 per share, and third-quarter adjusted earnings of 24 cents to 28 cents per share.

Analysts were expecting full-year earnings of $1.54 per share and third-quarter earnings of 31 cents per share, according to Reuters Estimates.

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video