Dean Foods Achieves Strong Sales for Q1, Bolstered by Cost Cutting
First-quarter net income rose to $37.9 million, from $25.3 million last year.
10 May 2012 --- Dean Foods Co. reported a higher-than-expected quarterly profit and raised its full-year forecast as it benefits from strong sales across all its segments and cost cuts.
First-quarter net income rose to $37.9 million, from $25.3 million last year.
"Today we announced strong first quarter results, driven by stronger than forecasted growth across each of our three operating segments, and supported by tight expense control across the business," said Gregg Engles, Chairman and CEO. "As a result, consolidated adjusted operating income increased 42% above year ago levels.
"Given our significant momentum in the first quarter, the cautious optimism that we expressed last quarter has turned less cautious," continued Engles. "All three operating segments performed well in the first quarter, and we expect strong full year growth across the business.
"At WhiteWave-Alpro, first quarter top-line growth accelerated behind strength in our core products as well as strong early consumer interest in our new product introductions. Fresh Dairy Direct continued to outperform the industry from a volume perspective. Morningstar's balanced business across foodservice and retail also produced solid first quarter results, we expect full year operating income growth in the mid-teens.”
As a result of these trends the company has scaled up its expectations for the year and is predicting a full year share price increase from $1.10 to $1.20.
