High costs impact Dean Foods' net income
Oct 1, 2007 12:00 PM
Dean Foods Co's net income from continuing operations for the second quarter totaled $28.2 million, compared with $74.8 million in the second quarter a year earlier.
“Our results are reflective of the unusually volatile and difficult environment we are operating in this year,” said Gregg Engles, chairman and chief executive officer. “Raw milk prices have increased steadily through the first half of the year, and have recently hit all-time highs. At the same time, the ramp-up of promotional pricing and additional investments behind the Horizon Organic brand during this time of significant raw organic milk oversupply has dampened WhiteWave Foods profit growth.”
The dairy product processor and distributor's net sales for the second quarter totaled $2.8 billion, an increase of 15% from net sales for the second quarter of 2006.
Net sales for the six months ended June 30, 2007, totaled $5.5 billion, a gain of 10% from net sales for the same period of 2006. Net income from continuing operations for the first half of the year totaled $91.4 million, versus $129.5 million in the first six months of 2006.
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