Dean Foods income dips despite sales increase
May 03, 2006
by FoodBusinessNews.net Staff
DALLAS — Closing, consolidation and restructuring charges crimped earnings at Dean Foods in the first quarter ended March 31, as net income fell 14% to $52,792,000, compared with $61,469,000 in the same period last year. During the quarter, the company incurred charges totaling $5.8 million related to the closing, consolidation and restructuring of various operations. This compares with charges of $9.5 million in the first quarter of 2005.
Net sales for the quarter grew slightly, totaling $2,591,968,000, an increase of 1% from $2,561,751,000 in the year ago quarter.
In the company’s Dairy Group net sales increased $12 million to $2.2 billion. This was due to a 3.4% increase in fluid milk volumes. The first Class I mover, an indicator of the company’s raw milk costs, averaged $13.08 per cwt, a 14% decrease from the same period last year. Class II butterfat prices averaged $1.37 per lb, 22% lower than in the first quarter of 2005.
WhiteWave Food posted net sales of $307 million for the quarter, an 8% increase from 2005. The increase was driven by strong sales in the branded portfolio, particularly in the company’s Silk, Horizon Organic and International Delights brands.
For fiscal year 2006, the company is projecting earnings per share of $2.10 to $2.15. For the second quarter, the company expects earnings of 52c to 54c per share.