News Alert: Dean Foods Co (NYSE:DF), JPMorgan Chase & Co (NYSE:JPM)
U.S. dairy company Dean Foods Co(NYSE:DF) confirmed that it would be shutting down 15 percent of its factories due to reducing volumes as well as increasing competition, as the company battered losses in the quarter with a warning of tougher times ahead.
The company stocks fell by 9 percent as it opined that the quarter was the most challenging for the year and would be shutting eight to twelve factories by mid of next year for trimming costs.
CEO Greg Tanner opined that the effort of shutting down factories would offset the volume deleverage.
Dean Foods, the largest processor and distributor of milk in the country, is about five times bigger than the nearest competitor. The firm had a net loss of $56.9 million whereas the profit was $56.2 million a year earlier.
It earned 13 cents per share from continuing operations whereas analyst expectations were 14 cents.
The company has forecasted third-quarter adjusted profit to be between 5-8 cents per share and it is expecting complete year adjusted earnings to be between 47-53 cents per share.
The firm’s milk volumes fell by 6 percent in the quarter. Revenue was flat at $2.2 billion.
Dean Foods had sold Morning earlier in the year whereas it disposed of the last of the firm’s stake in WhiteWave Foods, which owns brands such as Silk soy milk as well as International Delight.
JPMorgan Chase & Co(NYSE:JPM) shares fell by1.4% as news came out of government investigating the firm’s mortgage-backed securities dealings ahead of the financial crisis.
Both criminal and civil divisions of U.S. attorney’s office in California were looking into he sales from 2005 to 2007.
On the other hand, Consumer Financial Protection Bureau is questioning J.P. Morgan’s collection and sale of credit-card debt.
Besides this, both agencies are seeking orders to look into the firm’s oversight of third parties during the sale of identity-theft products.
Tags: Dean Foods Co (NYSE:DF), JPMorgan Chase & Co (NYSE:JPM)