Milk Prices, Retail Challenges Spoil Dean Foods' Performance
August 9, 2017 | 1 min to read
Milk price wars spoiled Dean Foods' bottom line.
Dean Foods, one of the largest dairy food manufacturers, said Tuesday bountiful U.S. milk supply and heightened competition among retailers contributed to a 45% drop in its net income in the second quarter.
Shares tumbled 21% on Tuesday as it also missed earnings estimates and warned that the "macro and competitive" pressures will continue in the coming months. The Dallas-based company, whose brands include Land O'Lakes, TruMoo, and Friendly's Ice Cream, lowered its 2017 per-share earnings expectation.
"We faced a challenging and rapidly evolving retail environment," CEO Ralph Scozzafava said.
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