Dean Foods reported third quarter 2015 results. Net income per diluted share was $0.22 and adjusted net income per diluted share was $0.30.
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Q3 adjusted results reflect the third consecutive quarter of year-over-year improved results behind solid execution and price realization. Dairy category improves and DairyPure, the first and largest fresh, white milk national brand, supports commercial performance.
The company Repurchased approximately $53 million of common stock, or approximately 3.2 million shares, at an average purchase price of $16.73 per share. Q4 adjusted diluted earnings are expected to be $0.28 to $0.38 per share.
The third quarter 2015 average Class I Mover, a measure of raw milk costs, was $16.38 per hundred-weight, a 4% sequential increase from the second quarter of 2015 and a decrease of 30% from the third quarter of 2014.
The company expects the fourth quarter 2015 average Class I Mover to approximate $16.22 which represents about a 1% decline sequentially and a 31% decline year-over-year.
Total volume across all products was 658 million gallons for the third quarter of 2015, a 2% decline compared to total volume of 673 million gallons in the third quarter of 2014. For the fourth quarter 2015, as compared to the prior year period, the company expects total volumes to decline in the low single digits.
Based on the USDA's recently published category data, fluid milk volumes improved sequentially from a 2.2% decline in the first quarter to a 1.3% decline in the second quarter.
Quarter-to-date through August 2015, fluid milk volumes declined approximately 0.9% year-over-year, on an unadjusted basis. On this same basis, Dean Foods' share of U.S. fluid milk volumes increased 10 basis points sequentially to 35.3% but decreased from 35.9% in the third quarter of 2014. ■
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