Dean Foods’ profits falls 9%

USA – Dean Foods has announced net profits of $27 million (30m euro) for the second quarter of fiscal 2002, a decline of 9% on the same period of 2001. Net sales, however, increased to 1.2 billion euro, a growth of 4.3% on last year.

The dairy group’s second quarter sales increased 6.1% to 955 million euro due to higher ice cream sales from an alliance with Baskin-Robbins, and higher fluid milk sales resulting from the pass-through of higher raw milk costs.

Operating profits were 46 million euro compared with 48 million euro last year. Raw milk costs increased 33% and butterfat costs increased 35% compared with the second fiscal of 2001. While price increases were imposed on milk and ice cream products, added costs could not be recovered through price rises, said Dean Foods.

The speciality food group’s second quarter sales fell from 205 million euro to 190 million euro, while the national refrigerated product group increased sales by 4% to 112 million euro. The company incurred four million euro worth of pre-tax costs due to the pending merger with Suiza Foods.