Sales for the quarter were $3,125,504,000, down 5% from $3,298,808,000 in the second quarter of fiscal 2011.
“We continued to build on our momentum in the second quarter, delivering strong growth across all of our operating segments,” said Gregg Engles, chairman and chief executive officer. “In addition to each of our businesses executing well against their stated plans, we also continued to benefit from disciplined expense control across the organization. As a result of these efforts, we reported a 37% increase in consolidated adjusted operating income and a 100% increase in adjusted diluted earnings per share. We are pleased with the progress we continue to make on all fronts, which is clearly translating into significantly improved financial performance and flexibility.”
The company also announced plans to initiate an initial public offering for 20% of the company’s White-Alpro business unit, which will change its name to The WhiteWave Foods Co. once the i.p.o. is completed. The money raised by the i.p.o. will be used to pay down some of Dean Foods’ debt, according to the company.
At the time of the i.p.o., Mr. Engles will be appointed chairman and c.e.o. of The WhiteWave Foods Co., while remaining chairman of Dean Foods. Gregg Tanner, president of Dean’s Fresh Dairy Direct business unit and chief supply chain officer, will be promoted to c.e.o. of Dean Foods.
The WhiteWave-Alpro business manufactures and distributes plant-based foods and beverages, coffee creamers and beverages as well as other dairy products throughout North America and Europe. During the second quarter, the business unit recorded operating income of $58 million, a 31% increase compared with this past year on sales of $573 million, an 11% increase compared with last year.
Operating income for Dean Foods’ Fresh Dairy Direct division was $125 million, up 41% from the second quarter of 2011. Sales for the quarter were $2.2 billion, a 10% decrease compared with last year.
Sales for the company’s Morningstar business unit remained flat during the quarter at $345 million. Operating income was $32 million during the quarter, which compared with $27 million in the same period a year ago.
For the first six months of fiscal 2012, overall net income was $94,048,000, or 51c per share. The company recorded a loss of $25,250,000 during the first half of fiscal 2011. Sales during the first six months were $6,339,598,000 in 2012, a slight decline compared with the first six months of 2011 when sales were $6,348,662,000.
