Dean Foods Co. (DF) posted a surge in first-quarter net income attributable to the company to $492.6 million, or $2.63 a share, from last year's $37.88 million, or $0.20 a share.
The company said these financial results reflect the January 2013 sale of its Morningstar business, the gain of which is the primary driver of the earnings of $2.63 per share and is reflected in discontinued operations, as well as its majority ownership interest in its consolidated unit, The WhiteWave Foods Co. The publicly-held minority interest is reflected as a non-controlling interest.
Excluding the company's ownership interest in WhiteWave, the firm's Ongoing Dean Foods segment, including the former FDD segment and Corporate costs, reported adjusted earnings of $0.16 per share. Adjusted earnings stood at $0.29 per share for the first quarter of 2013. On average, 9 analysts polled by Thomson Reuters expected earnings per share of $0.27 for the quarter. Analysts' estimates typically exclude one-time items.
On a GAAP basis, net sales for the period remained almost unchanged at $2.9 billion over the prior year. Analysts estimated revenues of $2.98 billion for the quarter.
For the second quarter, Dean Foods expects to earn between $0.11 and $0.15 per share, excluding WhiteWave's operating results. Excluding WhiteWave's operating results, Dean Foods still expects adjusted earnings per share of between $0.45 and $0.55 for the full year 2013.
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