Dean Foods Q2 Loss Narrows; Withdraws Full Year Guidance - Quick Facts

(RTTNews) - Dean Foods Co. (DF) reported that its second-quarter of 2014 net loss attributable to the company narrowed to $0.65 million from $56.87 million in the year ago quarter. On a per share basis, net loss was $0.01, compared to a loss of $0.61 in the previous year.

On an adjusted basis, the second quarter 2014 loss from continuing operations was $0.14 per share, compared to second quarter 2013 adjusted earnings of $0.26 per share. Analysts polled by Thomson Reuters expected the company to report a loss of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

"The second quarter was even more challenging than we had originally anticipated. This is by far the most difficult operating environment in the history of the company, reinforcing the importance of the initiatives we have underway," said Gregg Tanner, Chief Executive Officer of Dean Foods.

Net sales for the second quarter grew to $2.39 billion, from $2.23 billion last year. Wall Street expected revenues of $2.32 billion for the quarter.

The company expects an adjusted net loss of between $0.05 and $0.15 per share in the third quarter. Analysts project third-quarter earnings of $0.26 per share.

While it hopes to see a more positive environment later in the year, the uncertainty surrounding whether or when that will occur leads the company to withdraw its full year guidance for the present time, the company said.

The company also expects to be at the low end of its prior 2014 capital expenditure guidance of $150 million - $175 million.

The company said that it continues accelerated cost reductions program and it achieves goal of 8-12 plant closures by mid-2014.