February 12, 2009

Dean Foods Company announced that its net income for the fourth quarter of 2008 totalled US$67.4 million, compared with US$32.6 million in the prior year's fourth quarter.

Adjusted net income from continuing operations for the fourth quarter was US$71.3 million, up 92 percent on-year. The increases were driven by a 31-percent increase in DSD Dairy segment operating profit, a 14-percent increase in WhiteWave-Morningstar segment operating profit, and lower interest expense.

Total net sales for the fourth quarter totalled US$3.1 billion, 5-percent below total net sales in the fourth quarter of 2007. Net sales decreased in the quarter due to the pass-through of lower overall dairy commodity costs that were partially offset by acquisition-aided volume growth in the DSD Dairy segment and continued net sales growth at WhiteWave-Morningstar.

Consolidated operating income in the fourth quarter totalled US$183.6 million, an increase of 29 percent from US$142.5 million in the fourth quarter of 2007. Adjusted fourth quarter consolidated operating income totalled US$190.0 million, an increase of 27 percent from US$149.2 million in the fourth quarter of 2007.

Net sales for 2008 totalled US$12.5 billion, up 5 percent on-year, while net income for the year grew 29 percent to US$184.8 million.

DSD Dairy net sales for the fourth quarter were US$2.37 billion, down 7 percent on-year. For the full year, DSD Dairy net sales grew 4 percent on-year to total US$9.8 billion.

The WhiteWave-Morningstar segment reported fourth quarter net sales of US$707.9 million, 5-percent higher from the fourth quarter 2007. For the full year, WhiteWave-Morningstar net sales increased 10 percent on-year to US$2.65 billion.

The fourth quarter of 2008 was the strongest in Dean Foods history, said Gregg Engles, Chairman and CEO, noting that free cash flow for the year was the highest ever at US$462 million.

Dean Foods is one of the leading food and beverage companies in the US. The company's DSD Dairy segment is the largest processor and distributor of milk and other dairy products in the country, while the WhiteWave-Morningstar segment markets and sells a variety of nationally branded dairy and dairy-related products.