Dean Foods reports wider-than-expected loss, suspends dividend

Dean Foods Co.

reported a wider-than-expected loss and suspended its dividend, but the shares rose 1.3% in premarket trade after the food and beverage company said it was reviewing strategic alternatives to boost shareholder value. The company swung to a net loss of $260.1 million, or $2.85 a share, from a profit of $52.3 million, or 57 cents a share, in the same period a year ago. Excluding non-recurring items, such as a non-cash impairment charge, the adjusted loss per share was 50 cents, compared with the FactSet consensus of a loss of 26 cents a share. Sales were roughly flat at $1.93 billion, but topped the FactSet consensus of $1.91 billion. The company, which brands include Land O Lakes, Country Fresh and Dean’s, said it was suspending its quarterly dividend as part of measures to enhance its balance sheet. The quarterly dividend was 3 cents a share, implying a dividend yield of 2.64% at Tuesday’s closing price. The stock has tumbled 49% over the past 12 months, while the S&P 500
has gained 1.8%.

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