Combatting a years-long decline, Dean Foods announced third quarter results this week that saw the company strengthening its volume performance and attempting to right the ship despite year-over-year declines.
Chief Executive Officer Gregg Tanner said, "I am extremely pleased with our third quarter results, which reflect the strongest volume performance we've seen in years, a disciplined go-to-market strategy and continued focus on reducing costs. Our entire organization is focused on executing our strategic plan, and you see that in our results."
In fact, a third quarter volume change of -1% year-over-year represents the strongest volume performance for the company in at least four years, with further improvements expected to follow in the fourth quarter, according to the company’s press release. Dean Foods’ net income per diluted share was $0.16 and adjusted net income per diluted share was $0.37, with fourth quarter adjusted diluted earnings expected to follow at $0.37 to $0.45 per share.
Other highlights from Dean Foods' third quarter report included:
Tanner concluded the company’s announcement on a positive note: "For the fourth quarter, with improving volume performance, in addition to continued pricing and cost discipline, we expect the fourth quarter to be our eighth consecutive quarter of year-over-year adjusted operating income improvement. All told, we expect adjusted diluted earnings of between $0.37 and $0.45 per share."
Despite overall declines, Dean Foods’ share of U.S. fluid milk volumes increase by 60 basis points to 35.1% for the quarter-to-date through August. According to data published by the USDA on fluid milk sales through August, fluid milk volumes, in general, decreased 0.9% year-over-year in the third quarter of 2016, and Dean Foods faired better than its competitors.
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