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Dark Clouds Loom Over Dean Foods

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The company, which has been bearing the brunt of high raw milk prices , marked its third straight earnings miss, in second-quarter 2017. This also compelled management to cut its bottom-line view for the full year.

While management announced plans to expand its cost productivity program with the quarterly results, its lowered earnings view for 2017 hints at a bumpy road ahead.

Evidently, the USDA data through May 2017 revealed that fluid milk volumes dipped 2.9% year over year, on a quarter-to-date basis. Likewise, Dean Foods’ share of U.S. fluid milk volumes contracted 30 basis points in the quarter under review. While volumes hampered sales, earnings were hurt by a rise in raw milk costs that escalated 15% year over year.

Updated: 22 september, 2017 — 10:20
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