Wednesday, 25 June 2008

Dean Foods Raises Second Quarter EPS Guidance

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Wednesday, 25 June 2008

Strong performance leads to increased forecast; continued strong cash flows

Company plans to issue a full earnings release and a webcast conference call
on August 6, 2008

DALLAS, June 25 /PRNewswire-FirstCall/ — Dean Foods Company (NYSE: DF)
today announced that results for the second quarter ending June 30 are
expected to exceed the Company’s previously issued guidance of $0.26 to $0.31
per diluted adjusted share. The Company now expects adjusted diluted earnings
(as defined below) for the second quarter to be at least $0.32 per share.

Our DSD Dairy business is performing particularly well in the second
quarter, commented Gregg Engles, Chairman and CEO. Our team’s efforts to
reduce the cost of production and distribution, combined with effective
management of the pass through of increased dairy commodity and energy costs
through this inflationary period, is resulting in a strong overall performance
in the second quarter. As a result, we are increasing our guidance for the
second quarter and reaffirming our full year guidance for at least $1.20 per
share in adjusted earnings. We will provide more detail on the second quarter
performance and our full-year expectations in conjunction with our earnings
report in early August.

The Company also continues to generate strong cash flow in the second
quarter, and expects its quarter-ending Leverage Ratio, as defined in its
credit agreements, to be approximately 5.5x, compared to a covenant level of

We are very comfortable with our current level of flexibility under our
financial covenants, added Jack Callahan, Chief Financial Officer. Our
Leverage Ratio covenant steps down to 5.75x at the end of this year. We are
already below this requirement and expect our Leverage Ratio to be below 5.25x
at year end.

The Company plans to host a live webcast of its second quarter earnings
conference call on August 6, 2008 at 9:30 a.m. ET. Management will discuss the
results for the second quarter and update investors on the outlook for the
remainder of 2008. An earnings release will be issued before the market opens
on the same date. The webcast is expected to last approximately one hour and
will be accessible by visiting and by clicking on

In order to listen to the webcast, users will need to have installed
either Real Player or Windows Media Player software, which can be detected and
downloaded by visiting the site. A webcast replay will be available for
approximately 45 days following the event within the Investor Relations –
Audio Archive section of the company’s site.

Adjusted diluted earnings per share exclude the effect of facility
closings, reorganizations and other non-recurring charges.


Dean Foods Company is the largest processor and distributor of milk and
other dairy products in the United States. The Company sells milk and a full
range of other dairy products under more than 50 well-known local and regional
brands and a wide array of private labels. The Company’s WhiteWave-Morningstar
division produces a variety of nationally-branded dairy and dairy-related
products, such as Horizon Organic (R) dairy products, Silk (R) soymilk, and
International Delight (R) coffee creamers. WhiteWave-Morningstar’s Rachel’s
Organic (R) brand is the largest organic milk brand and second largest organic
yogurt brand in the United Kingdom.


Some of the statements in this press release are forward-looking and are
made pursuant to the safe harbor provision of the Securities Litigation Reform
Act of 1995. These forward-looking statements include statements relating
to, among other things, adjusted diluted earnings per share, debt covenant
compliance and expected financial performance. These statements involve risks
and uncertainties that may cause results to differ materially from the
statements set forth in this press release. The Company’s ability to meet
targeted financial and operating results, including targeted sales, operating
income, net income and earnings per share depends on a variety of economic,
competitive and governmental factors, including raw material availability and
costs, the demand for the Company’s products, and the Company’s ability to
access capital under its credit facilities or otherwise, many of which are
beyond the Company’s control and which are described in the Company’s filings
with the Securities and Exchange Commission. The forward-looking statements in
this press release speak only as of the date of this release. The Company
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to such statements to reflect any change in its
expectations with regard thereto or any changes in the events, conditions or
circumstances on which any such statement is based.



Barry Sievert

Investor Relations

(214) 303-3437


Marguerite Copel

Corporate Communications

(214) 721-1273

SOURCE Dean Foods Company

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