Dean Foods reports third quarter
Dean Foods reports an operating loss of $1 million for the quarter ending September 30th compared to an operating income of $23 million for the third quarter last year. Adjusted operating income for the quarter was $10 million compared to $42 million in 2013. Net sales for the third quarter were $2.4 billion compared to $2.2 billion a year ago. The diluted loss per share was 3 cents compared earnings of 12 cents last year. The loss was actually less than expected.
High farm milk prices given as the reason for the quarterly losses. The Class I Mover was $23.51 per hundredweight which was 24 percent higher than a year ago and the second-highest Class I Mover in history. The Class I Mover is a measure of raw milk costs for milk headed for fluid consumption. Dean is the largest milk-bottler in the country with more than 35 percent of the fluid milk market in the United States.
Part of the loss was also attributed to Dean’s extended period of plant closings. The four most-recent closings were reflected in the third-quarter. Dean has closed a dozen plants in the last two years as part of an efficiency effort.
Read the full quarterly report here: