BANGALORE – Top U.S. dairy company Dean Foods Co said it has stepped up efforts to cut expenses and may continue to raise prices as it battles higher commodity costs and weak demand at its fresh dairy products business.
Shares of the company were up 15 percent, after it reported a higher-than-expected first-quarter profit, and raised its full-year earnings forecast, helped partly by strong sales of its Horizon Organic branded milk.
Dean, which has been struggling with competition from cheaper private-label brands and rising costs of milk, has been reducing costs since 2009, and it expects to more than double its previous target of a $30 million cut in selling, general and administrative expenses from 2010.
As part of its efforts, Dean cut 140 jobs early in the second quarter. The company had about 27,000 employees, according to its website.
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