Dallas-based dairy producer Dean Foods Company said yesterday (2 August) that its net income for the second quarter fell sharply to US$28.9m, or 21 cents a share, down from $110.5m in the comparable period of 2005.
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Revenues dropped by 2% to $2.48bn from $2.52bn last year.
The company said that it took a $46.4m impairment charge related to the sale of its Iberian operations in the quarter. It also reported a $2.4m charge related to dairy group facility closings and restructurings and a $600,000 charge related to reorganisation and consolidation activities at WhiteWave Foods.
Nevertheless, Gregg Engles, chairman and chief executive officer, said that the company is “on track to deliver significant operating benefits in the future”, reiterating the company’s full-year guidance.
“We have strong momentum as we enter the second half of the year, and 2006 is on track to be another strong year for Dean Foods,” said Engles. “We are reiterating our full-year guidance for earnings to be $2.10 to $2.15 per share compared to 2005 earnings of $1.83 per share. For the third quarter, we are expecting earnings of approximately $0.54 to $0.56 per share.”
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