Earnings up 10% on Lower Sales at Dean
DALLAS--Despite a 10% increase in profits, Dean Foods Co. saw its stock prices dip a bit last month after its second quarter report indicated that sales were down from last year's second quarter.
Net income for the quarter totaled $83.8 million, compared with $73.2 million in the second quarter of 2002. Diluted earnings per share were $.54, compared with $.48 per share in the second quarter of 2002. Second quarter net sales totaled $2.2 billion in 2003, a decline of 3% over the second quarter of 2002, due primarily to lower raw material costs that are passed on to customers in the form of lower selling prices.
In June, Dean Foods completed the acquisition of Melody Farms, Livonia, Mich. With annual sales of approximately $116 million, Melody Farms is a leading processor and distributor of dairy products in the Michigan marketplace. That same month, Dean announced that it would purchase Horizon Organic Holdings Corp., and at the end of July, Dean Foods completed the sale of Morningstar Foods' frozen whipped topping and frozen creamer business based in Arlington, Tenn., to Rich Products Corp.