Dean Foods announces third quarter earnings expectation

Business Wire, March 13, 1995

Franklin Park, Ill.--(BUSINESS WIRE)--March 13, 1995--Howard M. Dean, chairman and chief executive officer of Dean Foods Company, indicated that earnings for the third quarter ended February 27, 1995, are expected to be within the range of $.41 to $.44 per share compared to $.46 per share reported in the third quarter last year. Actual results will be announced later this month.

Dean said, "Total operating results before interest and taxes should exceed the third quarter of fiscal 1994. All product groups, except ice cream, are expected to exceed last year's results. Higher interest costs and increased taxes are the principal factors for the lower level of earnings. The tax provision will likely increase as a result of the sale of non-business related property during the quarter."

Dean further commented, "Ice cream results for the third quarter are anticipated to be negatively impacted by continued competitive pressure on margins and costs associated with the introduction of a new product line, Guilt Free -- a non-fat, no sugar ice cream. The results for our ice cream group should improve with the seasonal increase in consumption. Interest costs will decline as cash flows in the fourth quarter reduce seasonal crop related borrowings."

Dean concluded: "We anticipate strong fourth quarter performance from all of our operating groups. We are confident that the results for the fourth quarter of fiscal 1995 should meet or exceed the results of a year ago."

CONTACT: Martin E. Janis & Company Inc., Chicago

Beverly Jedynak, 312/943-1100