Friday, June 27, 2008

Dean Foods Profits on Higher Dairy Prices

Dean Foods Ethanol milk pricesDean Foods Co. raised its second-quarter earnings guidance on Wednesday, due in part to a strong performance by its direct store delivery dairy segment. Dean Foods is a large milk and dairy products distributor in the US.

The company expects adjusted earnings for the quarter ending June 30 of at least 32 cents per share. The company had previously expected earnings per share between 26 cents and 31 cents.

Dean Foods also confirmed the company's full-year guidance for at least $1.20 per share in adjusted earnings.

What's interesting about this financial update is that the Grocery Manufacturers Association, which Dean Foods is a leading member, blames American biofuels for higher food prices.

It's clear that higher profits are playing a key part of the food inflation story.

Source: Dean Foods

Food Before Profit

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