Dean Foods shares sink after swinging to a loss
Dean Foods Co. shares fell 10% in Wednesday premarket trading after the food and beverage company reported third-quarter losses. Dean Foods brands includes Dean's, Garelick Farms, Tuscan and Lehigh Valley Dairy Farms. Dean Foods licenses the Land O' Lakes brand. Dean Foods reported a net loss of $26.4 million, or 29 cents per share, after a profit of $1.4 million, or 2 cents per share. Adjusted loss per share was 28 cents, well below the 6 cents loss FactSet expected. Revenue totaled $1.89 billion, down from $1.94 billion last year, but ahead of the $1.84 billion FactSet guidance. Dean Foods closed and consolidated seven plants, redistributing the volume into 23 other facilities, Chief Executive Ralph Scozzafava said in a statement. "This work contributed to a very challenging quarter as these closures were complicated and we made it our top mission to prioritize service to our customers," he said. "We incurred significant transitory costs related to ramping up receiving plant locations while also experiencing deleverage as volume exited the closing facilities." Dean Foods stock has fallen 33.4% for the year to date while the S&P 500 index has gained 3.1% for the period. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.