Dean Foods reports loss for 4Q, year
Dean Foods Co. today announced a loss of $0.05 per diluted share in the fourth quarter 2011, compared to a fourth quarter 2010 loss of $0.11 per diluted share. On an adjusted basis, fourth quarter 2011 diluted earnings per share were $0.27, an 80% increase from the $0.15 per diluted share earned in the prior year’s fourth quarter.
For the fourth quarter of 2011, the net loss attributable to Dean Foods totaled $10 million, compared to a net loss of $21 million in the prior year’s fourth quarter. Adjusted net income for the fourth quarter was $51 million, an 89% increase from $27 million in the fourth quarter of 2010.
Dean reported a loss of $8.59 per share for the full year 2011, as compared to earnings of $0.50 per diluted share for the full year 2010. The loss for the year was driven by a goodwill impairment charge related to Fresh Dairy Direct of $1.6 billion, net of tax, in the second half of 2011. On an adjusted basis, the Company earned $0.77 per diluted share for the full year 2011, compared to $0.80 for the full year 2010. For the full year 2011, consolidated operating loss totaled $1.8 billion, in comparison to consolidated operating income of $400 million in 2010. On an adjusted basis, full year 2011 consolidated operating income totaled $464 million, compared to $472 million for the full year 2010.
Significant changes in the fluid milk business and diverging market conditions, go-to-market models and customer bases have increasingly led management to view the Fresh Dairy Direct and Morningstar businesses differently. In the fourth quarter of 2011, management began managing, investing in, and developing strategy for these businesses separately. Therefore, the Company will now report the business in three segments: Fresh Dairy Direct, WhiteWave-Alpro, and Morningstar. The Company will post supplemental financial information regarding the segments on its website today.
WhiteWave-Alpro is a world-class globally branded platform with a history of strong top and bottom-line growth driven by innovation and market leading brands in growth categories. In 2011, WhiteWave-Alpro net sales and adjusted operating income, which excludes the non-controlling interest in the Hero/WhiteWave joint venture, totaled $2.1 billion and $206 million, respectively.
Fresh Dairy Direct is focused on winning in fluid milk by driving to the lowest cost and providing superior customer service through one of the country’s largest refrigerated direct store delivery networks. In 2011, Fresh Dairy Direct net sales and operating income totaled $9.6 billion and $349 million, respectively. Market dynamics remain challenging, and the Company continues to reduce costs, particularly in SG&A, to increase the competitiveness and profitability of the business.
Morningstar is a leading provider of value-added extended shelf life fluid and cultured dairy products with an emphasis on foodservice customers and private label retail. In 2011, Morningstar net sales and operating income totaled $1.3 billion and $95 million, respectively. Long-term success is expected to be driven by continued innovation and strong customer relationships.
Read the entire press release on the Dean Foods Co. website.