Net sales improved to $3.05 billion from net sales of $2.96 billion reported in the first quarter of the previous year on strong sales growth at WhiteWave-Alpro. Net sales of the WhiteWave-Alpro increased 7% year-over-year to $507 million.
Consolidated operating income decreased to $106 million as compared to operating income of $120 million earned in the prior year period on lower sales volume recorded by the Company’s Fresh Dairy Direct-Morningstar segment which reported a decline of 12% in income from operations of $111 million. Income from operations earned by the WhiteWave-Alpro segment increased on strong sales growth to $48 million representing an increase of 8% year-over-year.
Net earnings in the quarter declined to $25.263 million or 0.14 per diluted share as compared to net earnings of $43.154 million or $0.23 per diluted share on GAAP basis while adjusted earnings reduced to $24.809 million or $0.14 per diluted share as compared to net adjusted earnings of $42.989 million or $0.24 per diluted share.
After reporting a better than anticipated sales in the first quarter Dean Foods expects to report adjusted net earnings of $0.65-$0.75 per diluted share in fiscal 2011 and adjusted net earnings of $0.15-$0.20 per diluted share in the second quarter of fiscal 2011. This beats the analyst estimate of net earnings of $0.13 per diluted share for the second quarter and $0.58 per diluted share for the fiscal of 2011. Dean Foods Company shares traded on a high volume of 25.01 million shares as compared to 8its average trading volume of 3.46 million shares. Its shares closed trade at $12.24 after gaining 11.48% or $1.26.