US Dean Posts Profit, Loses Shares

An oversupply of dairy cows and increased produce costs passed on to consumers led to US top dairy producer Dean Foods losing share value yesterday, despite the company posting a second-quarter profit increase of 31%.

Analysts had expected better a performance by Dean, and so did shareholders.

Shares in Dean fell 9% to close at $19.38.

Dean’s increased profit was helped by lower commodity costs and plant closures, and lower diesel fuel.

Despite the fall in shares, however, Dean has predicted a higher target – $1.60 from $1.55 earlier predicted – for its shares for the year.

Analysts are still pitting the outlook as being higher, however. They say Dean should make $1.67.