August 6, 2009

Dean Foods' second quarter profit jumped 31 percent as cost cutting efforts were supported by lower raw milk and energy prices.

A reversal in prices in relation to the recession and reduced consumer spending, have helped in the company's effort to save US$300 million over the next several years, mainly at Dean's dairy operations.

Second quarter profit rose to US$64.1 million from US$48.9 million a year ago. Shares outstanding increased 9.4 percent as the company sold some US$450 million in stock during the quarter partly for debt repayment. Dean said the offering would boost its share count by 14 percent.

Net sales fell 14 percent to US$2.7 billion, while gross margin increased to 28.5 percent from 23.8 percent.

Dean's Fresh Dairy Direct operations posted a nine-percent earnings increase as volume rose and input costs fell. Sales fell on the price decline.

In addition, Dean has acquired the Alpro division of Belgium's Vandemoortele NV for US$455 million, in order to boost its position in the global soy foods market.