Dean Foods income up sharply in quarter

by FoodBusinessNews.net Staff
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DALLAS — For the first quarter ended March 31, Dean Foods Co. posted net income of $76,246,000, equal to 49c per share on the common stock, up sharply from $30,772,000, or 22c per share, during the same quarter of the 2008.

Sales for the quarter were $2,702,938,000, down 12% from $3,076,960,000 during the same quarter of the previous year.

"Clearly, the business was very strong in the first quarter, and we are off to a fast start in 2009," said Gregg Engles, chairman and chief executive officer. "Both of our operating segments contributed to the strong results, and we continued to move forward on our strategic initiatives. The strong performance across the business drove consolidated adjusted operating income growth of 47% in the quarter. DSD Dairy, which has recently been renamed Fresh Dairy Direct, contributed to this strong result with operating income growth of 39% over the year-ago period. WhiteWave-Morningstar also had a particularly strong quarter with operating income growth of 40% over the year-ago period."

The Fresh Dairy Direct segment had an operating income of $181,668,000, up 39% from $130,908,000 during the same quarter of the previous year. Sales for the segment were $2,098,534,000, down 15% from $2,458,476,000 during the same quarter of 2008.

The WhiteWave-Morningstar segment posted operating income of $63,473,000, up 40% from $45,392,000 during the same quarter of 2008. The segment had sales of $604,344,000, down 2% from $618,484,000 during the same quarter of the previous year.

"We have significant momentum in business with an exceptionally strong first quarter behind us and indications of a solid start to the second quarter," said Jack Callahan, chief financial officer. "We are expecting adjusted diluted earnings to be at least 38c per share for the second quarter."

The company also is expecting earnings per share of at least $1.55 for the full-year.

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