Shares of Dean Foods (NYSE: DF) tumbled more than 9% in pre-market trading after the company posted a wider-than-expected second-quarter loss and withdrew its forecast for the full year.
The Dallas, Texas-based company posted a quarterly loss of $1 million, or $0.01 per share, from a year-ago loss of $57 million, or $0.61 per share. Excluding non-recurring items, Dean Foods posted an adjusted loss of $0.14 per share, versus adjusted earnings of $0.26 per share.
Its sales climbed to $2.39 billion versus $2.23 billion. However, analysts were expecting the company to post a loss of $0.05 per share on revenue of $2.32 billion.
For the six months ended June 30, 2014, the company's consolidated net cash from continuing operations came in at $25 million.
Dean Foods' share of US fluid milk sales volume rose to 35.9% in the quarter, versus 35.7% in the first quarter. On a full quarter same basis, its unadjusted fluid milk volumes shrank 4% y/y.
"The second quarter was even more challenging than we had originally anticipated. This is by far the most difficult operating environment in the history of the company, reinforcing the importance of the initiatives we have underway," said Gregg Tanner, Chief Executive Officer of Dean Foods.
For the third quarter, Dean Foods projects an adjusted loss of $0.05 to $0.15 per share, versus analysts' estimates for a profit of $0.24 per share.
Dean Foods shares dipped 9.87% to $14.25 in pre-market trading.
Original headline: UPDATE: Dean Foods Posts Wider-Than-Expected Q2 Loss, Shares Tumble
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