May 10, 2013

Sales of dairy unit sends Dean Foods' profit skyward

Dean Foods profit increased by 11 fold because of strong sales, the Dallas-based dairy processor said early May 9, 2013.

For the period that ended March 31, Dean Foods reported a profit of US$492.6 million or US$2.63 a share, compared to last year's profit of US$37.9 million or US$0.20 a share.

"These financial results reflect the January 2013 sale of the company's Morningstar business, the gain of which is the primary driver of the diluted earnings of US$2.63 per share," the company said.

Not counting one-time events, profit was US$29 a share, ahead of analysts' estimates.

First quarter 2013 sales totalled US$2.9 billion, essentially flat compared to the first quarter of 2012.

Sales for the "on-going Dean Foods" totalled US$2.3 billion in the first quarter of 2013, down from US$2.4 billion in the same period last year.

In January, Dean closed on the sale of its Morningstar unit. In 2012, the company began the process of spinning off its WhiteWave unit. It will keep a minority stake in that company, which makes Horizon Organic and Silk products.