Dean Foods Q1 Profits Rise

NEW YORK - Feb 10/05 - SNS -- Dean Foods Company reported net income of U.S. $98.9 million on sales of $2,791 million during the first quarter ending December 31, 2004, compared to net earnings of $86.5 million on sales of $2,510 million during the same quarter in 2003.

The increase in net sales was attributed to the acquisitions of Horizon Organic and Ross-Swiss Dairies, increased selling prices resulting from the pass through of increases in raw milk and butterfat costs and continued strong volume growth at the Dairy Group and White Wave Foods.

Dairy Group net sales for the fourth quarter rose 7% to $2.2 billion, from $2.1 billion in the fourth quarter of 2003. The sales increase was due primarily to the acquisitions of Ross-Swiss Dairies and Milk Products of Alabama, higher raw milk and butterfat costs that were passed along to customers in the form of increased selling prices and a 2.7% increase in fresh fluid milk and cream volumes in the quarter.

Dairy Group operating income in the fourth quarter was $153.5 million, a decrease of 5% year over year. Operating margins decreased 90 basis points to 7.0% of sales.

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