Posted on Thursday, August 4th, 2011 at 6:28 pm.
Dean Foods Co., the largest dairy company in the United States, forecast a third-quarter profit below analysts’ estimates.
Dean Foods, which reported higher quarterly profit than expected, anticipates a third-quarter adjusted profit on 12-17 cents a share. According to Thomas Reuters, analysts were expecting 18 cents a share.
Fluid milk volumes at the company’s Fresh Dairy Direct-Morningstar unit fell 1.1 in the second quarter, which was also affected by soft sales of ice cream, cottage cheese and sour cream. Total volumes at the segment fell 4.3 percent. In May, the company said it was stepping up its efforts to cut expenses to offset rising commodity costs and weak demand at its core fresh dairy products business.
Chief Executive Gregg Engles released a statement saying: “We continued to execute our plan to drive costs out of the business, and progress in this area has been solid.”
In the latest quarter, general and administrative expenses fell 4 percent to $153.6 million. Dean Foods reported a second-quarter loss of $50.5 million, or 28 cents a share.
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