Dean Foods reports strong third-quarter earnings

Dean Foods Company announced continued strong earnings growth in the third quarter with diluted earnings per share of $0.27 for the quarter ended September 30, 2009, a 13 percent increase over $0.24 per diluted share in the third quarter of 2008. Adjusted (as defined below) diluted earnings per share were $0.34, an increase of 21 percent from $0.28 per adjusted diluted share in the prior year's third quarter.

"We are reporting another strong quarterly performance with continued solid operating income and earnings per share growth," said Gregg Engles, chairman and chief executive officer. "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."

Net income for the third quarter totaled $49.7 million, compared with $37.8 million in the prior year's third quarter, an increase of 32 percent. Solid operating income growth at Fresh Dairy Direct and WhiteWave-Morningstar and lower interest expense offset increases in Corporate and Other expenses to drive 43 percent growth in adjusted net income for the third quarter to $62.2 million, up from $43.5 million in the third quarter of 2008. Due to lower average debt balances, interest expense in the quarter totaled $59.5 million, compared to $74.7 million in the third quarter of 2008.