November 12, 2012

Dean Foods reaches US$36 million profit for Q3 2012

US dairy firm, Dean Foods, has reached US$36.44 million in profits during the third quarter of 2012, compared to a US$1.55 billion loss in 2011.

Net sales in the quarter ended September 2012 declined 7.9% to US$3.14 billion, compared to US$3.41 billion in 2011.

Dean Foods chairman and CEO, Gregg Engles, said the company reported strong quarter results, driven by growth across each of the three operating segments.

"Our strong performance this year has created the flexibility to pursue important strategic actions like the recently completed initial public offering of The WhiteWave Foods Company," Engles added.

In October 2012, the company spun off its WhiteWave-Alpro division, which offers a range of branded dairy, soy, and plant-based foods and beverages, in a US$391 million initial public offering.

Currently, it holds 87% stake in WhiteWave and is evaluating the sale of Morningstar dairy business in an estimated deal of more than US$1 billion.

For the first nine months of 2012, the company's net income totalled US$130 million, up from a loss of US$1.56 billion in 2011, while net sales rose 2.8%.

Dean Foods increased its full year 2012 adjusted diluted earnings forecast to between US$1.27 and US$1.32 per share, compared to its earlier estimate of US$1.18 to US$1.28, and it expects fourth quarter adjusted diluted earnings per share to be between US$0.27 and US$0.32.