Dean foods fall short of its expectations hitting the road to a loss. The shares at the list were down by 14% and were trading at $15.17. Further hurt by the retailer and the increasing price of butter fat and dairy products is also adding to its woe.
The U.S. retailers are opting a strategy to raise price in a way drilling a hole for the dairy products.
This quarter the Dean Foods reported a 24% fall in it earnings, showing a disappointing performance on the financial upfront.
The milk prices are expected to continue in the current range thus giving the company way to improve earnings of 2010.
For the first quarter Dean had already made up its mind to swing between the earnings of 25 cents to 30 cents a share falling short of the 40-cent, which later turned out to be a nightmare.
The fourth-quarter profit for Dean is $50.3 million, or 27 cents a share, down from $66.4 million, or 42 cents, a year earlier.
For the quarter ended Dec. 31, net income was $50 million, or 27 cents a share, compared to net income of $66 million, or 42 cents a share, in the year-earlier period. Sales dipped to $3 billion from $3.1 billion.