Boston, MA 08/11/2014 (wallstreetpr) – The global market may seem to overcome from recent financial crisis, but dairy industry is still going through the same old issues. According to reports, the largest dairy processor of USA Dean Foods Co. (NYSE:DF) is going through the toughest times of its history. As a result of the tough market conditions, the dairy product leader in US has denied reporting its earnings forecast for the entire year.
What Management Has To Say:
The reason told by a spokesperson of DF was that the company was going through a tough time as far as financial performance is concerned; hence, DF was unable to post year forecast. According to Gregg Tanner, The Chief Executive Officer of Dean Foods Co. (NYSE:DF), “Due to volatile and unpredictable dairy commodity environment in the country, the balance of the year looks quite gloomy.”The company is not able to determine the year long performance; hence, it has denied providing any expectations.
Gregg further added, “We are not able to provide a forecast for the entire year, but things seem good for the next quarter; hence, the company will provide next specific guidelines about the forthcoming quarter.”
According to Dean Foods Co. (NYSE:DF)’s forecast, the adjusted net loss for the Q3 2014 is expected to be between 5-15 cents per share.
Main Reason Behind Instability:
The main reason of instability in the financial performance of the company is but the increased prices of raw milk. According to reports made public by the company, Class I Mover; a measure of cost of raw milk was 31% in the Q2 2014 in comparison with Q2 2013.
Outcome of Instable Performance:
The shares of Dean Foods Co. (NYSE:DF) fell by 6.8% to $14.73 in the morning session. Shares of the company have already lost 10% of their price since February. After the negative performance in the stock market, Chris Bellairs; the Chief Financial Officer of the company said, “Due to extreme dairy commodity environment, we are facing uncustomary challenges.”
