Dean Foods Q2 profit rises 12%

by Staff
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DALLAS — Dean Foods Co. announced Wednesday that the company earned net income of $86,648,000, equal to 57c on the common stock, for the second quarter ended June 30, up 12.4% from $77,073,000, or 49c, in the same period last year.

"Our second-quarter results demonstrate further progress toward meeting our operational and strategic goals," said Gregg Engles, chairman and chief executive officer. "Our Dairy Group turned in another strong quarter, and WhiteWave Foods posted significantly increased profitability. Additionally, we successfully completed the spin-off of TreeHouse Foods, signed a definitive agreement to divest our Marie’s dressings and Dean’s dips businesses, and lowered our future interest expense through an amendment of our bank credit facility."

Revenue was flat for the quarter at $2,623,251,000, as the company passed on the cost savings on butterfat and raw milk to customers, offsetting higher milk volumes and increased sales at WhiteWave Foods.

Dairy Group net sales for the second quarter were $2,234,653,000, 2% lower than the second quarter of 2004. The sales decrease was primarily due to the pass-through of lower raw milk and butterfat costs, partially offset by a 4.1% increase in fluid milk volumes.

The Class I mover, which is an indicator of the company’s raw milk costs, averaged $14.18 per cwt in the second quarter of 2005, 22% lower than the same period in 2004.

WhiteWave Foods posted second-quarter net sales of $284,076,000, a 12% increase compared with the second quarter of 2004. The increase was driven by sales growth in the company’s core brands, which include Silk Soymilk and Horizon Organic dairy products.

The company forecast third-quarter earnings from continuing operations of 49c to 51c per share, and lowered its forecast for the year by a cent to $1.97 and $2.02 per share. Both forecasts exclude charges.

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