Dean Foods Reports Second Quarter 2014 Results

Aug. 13, 2014

DALLAS, Aug. 11, 2014 /PRNewswire/ -- Dean Foods Company (NYSE: DF) today announced second quarter 2014 results. The Company reported a second quarter 2014 diluted loss from continuing operations attributable to Dean Foods of $0.01 per share, compared to second quarter 2013 diluted loss of $0.61 per share. On an adjusted basis, the second quarter 2014 diluted loss from continuing operations was $0.14 per share, compared to second quarter 2013 adjusted earnings of $0.26 per share.  

Second quarter 2014 operating loss totaled $4 million, compared to second quarter 2013 operating income of $44 million. Second quarter 2014 adjusted operating loss totaled $6 million, compared to income of $65 million in the year-ago period.

"The second quarter was even more challenging than we had originally anticipated. This is by far the most difficult operating environment in the history of the company, reinforcing the importance of the initiatives we have underway," said Gregg Tanner, Chief Executive Officer of Dean Foods.

Net loss attributable to Dean Foods totaled $1 million for the second quarter of 2014 compared to a $57 million net loss attributable to Dean Foods for the year- ago period. On an adjusted basis, second quarter net loss attributable to Dean Foods totaled $13 million, compared to $24 million of net income attributable to Dean Foods for the second quarter of 2013.  

Net sales for the second quarter of 2014 totaled $2.4 billion, compared to $2.2 billion of net sales in the second quarter of 2013.

Dean Foods' share of U.S. fluid milk sales volume increased to 35.9% during the second quarter from 35.7% in the first quarter of 2014. Industry fluid milk volumes, through the two months ending in May, declined approximately 4.0 percent year-over-year on an unadjusted basis, based on USDA data. On a full quarter same basis, Dean Foods' unadjusted fluid milk volumes declined 4 percent on a year-over-year basis. This quarter's volumes continue to reflect the negative impact of the RFP-driven volume loss from a significant customer in 2013.  Excluding the impact of the RFP and another customer's decision to vertically integrate last year, our fluid milk volumes decreased 0.3% in the quarter, significantly better than the overall category's volume decline. Full report.