(RTTNews) - Food and beverage company Dean Foods Co. (DF: News ) on Monday posted higher profit for the third quarter, reflecting lower interest expense and higher sales at WhiteWave-Morningstar. Adjusted per share earnings advanced 21% from last year and topped the Street view. In addition, the company issued earnings forecast for the fourth quarter and lifted earnings outlook for the full year.

Q3 Results

The Dallas, Texas-based company's third-quarter net income totaled $47.1 million, up from $37.8 million in the same quarter of last year. Net income attributable to Dean Foods Co. was $49.7 million, an increase from $37.8 million reported a year ago. Per share earnings grew 13% to $0.27 from $0.24 per share in the year-earlier quarter.

The company said the third-quarter GAAP results is adjusted by $3.8 million charge related to announced facility closings, reorganizations and other costs; $8.2 million charge for transaction-related fees on acquisitions that have closed or are anticipated to close; and $0.6 million loss related to a foreign currency forward contract entered into in conjunction with acquisition of the Alpro Division of Vandemoortele, N.V. The year-ago results exclude $9.0 million charge related to previously announced facility closings, reorganizations and other costs.

On an adjusted basis, net income attributable to Dean Foods Co. rose to $62.2 million or $0.34 per share from $43.5 million or $0.28 per share in the comparable quarter of the previous year.

Quarterly net sales dropped 13% to $2.77 billion from the prior-year's net sales of $3.19 billion, and fell shy of the $2.94 billion revenue consensus estimate of nine analysts surveyed by Thomson Reuters.
The company blamed the pass-through of lower dairy commodity costs, and lower net sales volumes in the WhiteWave-Morningstar operations for the decline in third-quarter net sales. This decrease was offset by acquisition-related volume growth in Fresh Dairy Direct and WhiteWave-Morningstar.

Gregg Engles, Chairman and Chief Executive Officer, said, "These strong results highlight the key advantages of our business, including a national footprint that provides an unmatched ability to service customers, as well as unique cost savings opportunities. This breadth is complemented by strong branded and private label positions across the refrigerated case, with key offerings in the fastest growing on-trend product segments."

Operating income in the latest quarter totaled $137.1 million, as compared to $131.8 million in the third quarter of 2008. Adjusted operating income rose 12% to $158.0 million from $140.8 million in the year-earlier quarter.

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