Dean Foods has booked a drop in first-half profits, hurt by the cost of its out-of-court settlement with dairy farmers in the south-east of the US.
For the six months to the end of June, profits plummeted 40.8% to US$57.1m, the firm reported today (4 August). Operating profit dropped 13.9% to $221.m.
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Sales in the period, however, edged up 7.4% to $6.35bn.
For the second quarter, profits slid 39.6% to $32.3m, while operating profit fell $114.3m. Sales amounted to $3.3bn, an 11.8% increase on the prior-year.
“In many ways the second quarter of 2011 is a continuation of the trends we have seen over the last several quarters,” said Dean Foods chairman and CEO Gregg Engles. “WhiteWave-Alpro again posted strong results and Fresh Dairy Direct-Morningstar continued to make progress toward profit stability against a backdrop of weak industry volumes. We continued to execute our plan to drive costs out of the business, and progress in this area has been solid.”
Click here to view the full earnings release and check back later for further insight into Dean Foods’ results.
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