August 7, 2008

 

Dean Foods Q2 net soars 72 percent on dairy profits
  
  

Dean Foods' second quarter net income surged 72 percent on-year to US$48.9 million amid a robust performance from its DSD Dairy business and lower interest expenses.
 

Sales increased 9 percent to US$3.1 billion due to higher dairy commodity costs and volume growth in the DSD Dairy unit while gross margin fell to 23.8 percent from 24.2 percent.

 

The DSD Dairy unit, which primarily consists of Dean Foods' liquid milk and dairy operations, reported a 9-percent growth in earnings and sales, while volume rose 1.1 percent.

 

Dean Foods expects its full-year earnings to reach US$1.2 per share, excluding some items, and third-quarter earnings are forecast to reach 26-31 cents per share, excluding some items.

 

Shares of Dean Foods closed on Tuesday (August 5, 2008) at US$23.34 with no pre-market trading.

 

Dean Foods remains cautious on the second half of the year, warning of pressures from costs and competitions.

Video >

Follow Us

FacebookTwitterLinkedIn