Dean Foods Q4 down on low sales and high costs - Dean Foods Co. fiscal fourth quarter results - Brief Article

Eurofood, July 5, 2001

US dairy firm Dean Foods, which earlier in April this year agreed to be bought by compatriot dairy firm Suiza Foods in a US$1.5bn (1.7bn [European Dollar]) deal, has announced a 30.5% decrease in earnings as slow sales and higher costs in refrigerated foods hit the firm.

Dean Foods says it earned US$42.4m in the quarter ended 27 May 200l compared to US$61.0m in the same quarter a year ago.

Sales for the quarter increased slightly to US$1.16bn from US$1.03bn.

Sales in refrigerated products increased an impressive 43.8%, however higher costs resulted in operating earnings declining from US$9.6m to US$3.3m. US$2.5m was spent on marketing new products.

Net income for the quarter was US$1.8m, compared to US$26.1m, relating to pre-tax costs of US$22.2m for the merger with Suiza Foods.