DALLAS (AP) Dean Foods Co. recently reported a third-quarter loss of $26.4 million, after reporting a profit in the same period a year earlier. On a per-share basis, the Dallas-based company said it had a loss of 29 cents. Losses, adjusted for one-time gains and costs, came to 28 cents per share.
The results missed Wall Street expectations. The average estimate of six analysts was for a loss of 6 cents per share. The company posted revenue of $1.89 billion in the period, surpassing Street forecasts. Dean Foods expects full-year results to realize losses ranging from 10 cents to 30 cents per share. Dean Foods shares have decreased 33 percent since the beginning of the year, and 16 percent in the last 12 months.
The declines stem from a collection of issues. The company points to the closing and consolidating of seven plants, significant rises in fuel and freight costs, rising tariffs on U.S. dairy products, and competition from private labels having a significant impact on profitability. Industry analysts also point to the growing consumer interest in plant-based milks and other dairy alternatives as a new challenge for the countryâs largest milk producer.
