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.