DALLAS (AP) — In a story Aug. 7 about Dean Foods Co.'s earnings and the initial public offering of a subsidiary, The Associated Press reported erroneously that the company makes Land O' Lakes butter. It makes Land O' Lakes creamer, not butter.
A corrected version of the story is below:
Dean Foods shares climb on 2Q profit, IPO
Dean Foods moves to profit in 2Q, raises guidance and plans IPO of WhiteWave subsidiary
DALLAS (AP) — Dean Foods Co.'s shares skyrocketed in after-hours trading Tuesday after the company posted a second-quarter profit, raised its full-year guidance and announced the initial public offering of one of its subsidiaries.
The Dallas-based food maker said that it has filed the regulatory paperwork for an IPO of its natural and organic foods business The WhiteWave Foods Co. Dean will own at least 80 percent of the shares of the company, which makes Horizon Organic milk, International Delight Creamers, Silk soymilk, and Land O' Lakes creamer. It expects to use proceeds from the remaining 20 percent of shares to pay down Dean's existing debt.
Following the offering, Gregg Engles will be CEO of WhiteWave and remain chairman of Dean Foods. Gregg Tanner currently president of fresh dairy direct business and chief supply chain officer, will be promoted to CEO of Dean Foods.
Dean reported that it earned $56.2 million, or 30 cents per share, for the quarter that ended June 30. That's compared with a loss of $50.5 million, or 28 cents per share, in the same quarter last year. After adjusting for special items, it earned 36 cents per share.
Revenue slipped to $3.13 billion from $3.30 billion on lower pricing.
Analysts polled by FactSet expected 31 cents per share on an adjusted basis with revenue of $3.22 billion.
Dean Foods expects to earn 25 to 30 cents per share in the third quarter. Analysts forecast 25 cents.
The company also said it expects to earn $1.18 to $1.28 per share for the year, up from its most recent forecast of $1.10 to $1.20 per share. Analysts forecast earnings of $1.18 per share for the year.
Dean Foods shares jumped $3.33, or 26.8 percent, to $15.75 in after-hours trading.