Dean Foods reports strong quarter, 2012 results
Dean Foods Company announced strong fourth-quarter and full year 2012 results, reflecting both the initial public offering of The WhiteWave Foods Company in October 2012, and the sale of the company's Morningstar business in January 2013.
Fourth quarter Fresh Dairy Direct operating income was $106 million, compared to $107 million in the fourth quarter of 2011. Fourth-quarter 2012 Fresh Dairy Direct fluid milk volumes declined 0.8% compared to the same quarter a year earlier. Based on USDA estimates, the industry average was down 0.9%.
The pass-through of higher year-over-year commodity costs resulted in Fresh Dairy Direct net sales of $2.42 billion, a 1.5% increase from $2.39 billion in net sales for the fourth quarter of 2011. The fourth quarter 2012 average Class I Mover, a measure of raw milk costs, was $20.32/cwt., an increase of 8% from the fourth quarter of 2011, and 23% above the third quarter 2012 level.