Shares in Dean Foods slumped today (8 August) as the US dairy company swung to a second-quarter loss and narrowed its full-year earnings guidance.
The company reported a loss of US$56.9m in the six months to the end of June, compared with a profit of $56.2m a year earlier. The figure included a $21.8m loss from discontinued operations. Operating profit fell 38% to $43.6m, while sales remained flat at $2.23bn.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
CEO Gregg Tanner said the company expects the third quarter to be “the most challenging” of the year. As a result, the firm narrowed its full-year earnings guidance to 47 cents to 53 cents a share, from a previous estimate of 45 cents to 55 cents a share.
“Overall for the year, we continue to expect to substantially offset the financial impact of the lower volumes through accelerated cost reduction and productivity activities, resulting in a low-single digit increase in operating income from the pro forma 2012 results,” Tanner said.
Dean Foods said it made “solid progress” against its target of $120m in cost savings this year, including the planned closure of up to 12 factories by the middle of 2014.
Shares in Dean Foods had tumbled 8.35% to $10.10 at 12:07 ET.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataClick here to view the full earnings release.
