Dairy Processor News
Corporate earnings

Dean Foods reports loss for 4Q, year

February 15, 2012
/ Print / Reprints /
ShareMore
/ Text Size+

Dean Foods Company logoDean 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.

Dean ranks No.1 on the Dairy 100, Dairy Foods’ annual ranking of North America’s largest dairy foods processors.

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.

SEGMENT CHANGE

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.

Did you enjoy this article? Click here to subscribe to Dairy Foods Magazine. 
You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Velvet Ice Cream Co., Utica, Ohio

Velvet Ice Cream built its reputation on making premium products that adhere to the standard of identity for ice cream. Its lines consist of premium, all natural, churned (low-fat), no sugar added, novelties, sherbet (in cups and in push-up tubes) and a controlled ice cream brand for grocery store customers.

BehindtheScenes

This photo gallery contains additional, unpublished photos of dairy processing facilities featured in Dairy Foods magazine. To view more Behind the Scenes galleries go to our archives page!

11/18/14 2:00 pm EST

Harness Your Product Inspection Program to Save Money, Ensure Quality and Drive Efficiencies

Consolidation in the dairy industry is raising the bar on innovation and driving efficiencies to ensure competitiveness. One area often overlooked is the role that the right product inspection program can play in supporting the organization’s overall business goals and protecting brand reputation. Drawing on best practices in metal detection, X-ray inspection and checkweighing, this session will cover criteria to help determine the right technologies to employ for a given product and packaging type for high-value, perishable dairy products.

Dairy Foods Magazine

dairy foods october

2014 October

A look inside 100-year-old Velvet Ice Cream; Plus we look at four cheese processors with award-winning artisan and farmstead cheeses.

Table Of Contents Subscribe

Cheese Flavors

What’s your favorite flavor to eat in cheese?
View Results Poll Archive

THE DAIRY FOODS STORE

tharp-and-young-on-icecream.gif
Tharp & Young on Ice Cream: An Encyclopedic Guide to Ice Cream Science and Technology

An at once an all-inclusive guide to the meaning of hundreds of technical terms and ideas needed for ice cream manufacturing, as well as a practical introduction to the ingredients, freezing methods, flavoring, and packaging of ice cream, sherbet, sorbet, gelato, frozen yogurts, novelties and many other kinds of frozen desserts.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

Facebook logo 40px 2-12-13 Twitter logo 40px 2-12-13  YouTube logo 40px 2-12-13  LinkedIn logo 40px 2-12-13google plus

Dairy Foods Buyers Guide

cover df july 2013Resource for buyers in the dairy processing industry to find information on the leading suppliers and manufacturers.

Find Ingredients, Equipment, Distribution, R&D and More.

Start Your Search Today.