Dean Foods says US milk production increasing, US exports down Dean Foods said global fundamental supportive is supportive to the business against slowing supply growth and rebalancing demand. The company said US milk production is expanding with increases in both herd size and yield offsetting drought in California. Exports were down as a result of China and Russia demand contraction. Expects seasonal inventory buildup to continue in Q2. Weakening currencies and demand side constraints could mean reduced global prices in upcoming months. Reports Q1 volumes down 6% to 662M gallons. Expects volume declines to continue in line with recent trends. Expects higher cost per gallon to continue through 2015 as volume deleverage out paces the benefits it realized from plant closures and capital related efficiencies. The company said it is still driving FY15 cost productivity agenda across procurement, operations and logistics but it will take longer than expected to see flat growth. Comments taken from slides for Q1 earnings conference call.
Dean Foods reports Q1 Class 1 Mover was $16.79 per hundred-weight Total volume across all products was 662 million gallons for the first quarter of 2015, a 3% decline compared to total volume of 685 million gallons in the first quarter of 2014.