DALLAS, Nov. 7, 2016 /PRNewswire/ -- Dean Foods Company reported third quarter 2016 results.
Chief Executive Officer Gregg Tanner said, "I am extremely pleased with our third quarter results, which reflect the strongest volume performance we've seen in years, a disciplined go-to-market strategy and continued focus on reducing costs. Our entire organization is focused on executing our strategic plan, and you see that in our results."
Highlights
- Q3 volume change of -1% year-over-year represents strongest volume performance in at least 4 years; continued volume improvement expected in the fourth quarter
- Q3 net income per diluted share was $0.16 and adjusted net income per diluted share was $0.37
- Q4 2016 adjusted diluted earnings per share(1) are expected to be $0.37 to $0.45
Third Quarter 2016 Operating Results
The third quarter 2016 average Class I Mover, a measure of raw milk costs, was $15.11 per hundred-weight, an approximately 12% sequential increase from the second quarter 2016 and a decrease of nearly 8% from the third quarter 2015. The fourth quarter 2016 average Class I Mover forecast of $15.96 per hundred-weight represents an approximately 6% increase sequentially but an approximately 2% decline year-over-year.
Total volume across all products was 651 million gallons for the third quarter 2016, a 1.0% decline compared to total volume of 658 million gallons in the third quarter 2015, and represents the healthiest year-over-year volume performance the Company has delivered in at least four years. For the fourth quarter 2016, the Company expects continued improvement in total volume performance.
Based on fluid milk sales data published by the USDA through August, fluid milk volumes decreased 0.9% year-over-year in the third quarter of 2016 on an unadjusted basis. On this same basis, Dean Foods' share of U.S. fluid milk volumes increased by 60 basis points sequentially to 35.1% for the quarter-to-date through August. Full report.
