Dean said it continued to make progress in cost savings though plant closures, closing its ninth of up to 12 planned closures since the fourth quarter of 2012. Dean planned to close 10%-15% of its manufacturing facilities by mid-2014.
”We are working to offset both commodity and non-commodity related inflation through a combination of cost reductions and price realization. That said, we are clearly beginning the year behind commodity inflation in the first quarter given the rapid rise in Class I prices to all-time highs,” Tanner explained.
"We continue to feel confident in our long-term trajectory," said Tanner. "In 2013, Dean Foods successfully transformed itself, generating more than $2 billion in shareholder value, substantially deleveraging the company, and focusing the company on its core dairy business. At the same time, we faced significant challenges in the inflationary commodity environment and through competitive pressures on our business. This very challenging environment will persist for Dean Foods, particularly during the first half of 2014, but we are confident that we have the right strategies in place to drive meaningful productivity savings and top line volume growth through the balance of the year."
Fourth quarter 2013 operating income totaled $35 million, compared to fourth quarter 2012 operating income of $38 million. Fourth quarter 2013 adjusted operating income totaled $48 million, compared to $62 million in the year-ago period on an adjusted basis.
Full year 2013 operating income totaled $131 million, compared to full year 2012 operating income of $261 million. Full year 2013 adjusted operating income totaled $228 million, compared to $256 million in the year ago period on an adjusted basis.
Net loss from continuing operations attributable to Dean Foods totaled $37 million for the fourth quarter of 2013, compared with $8 million in income the previous year. On an adjusted basis, fourth quarter net income from continuing operations attributable to Dean Foods totaled $17 million, compared with $21 million in the previous year.
Net income attributable to Dean Foods totaled $813 million for the full year 2013, compared with $159 million in the previous year. On an adjusted basis, net income for the full year 2013 totaled $82 million, compared to $72 million in 2012.
SOURCE Dean Foods Company