Milk and dairy operator Dean Foods (DF) - Get Report reported a wider-than-expected first-quarter loss on Tuesday as the company continues to focus on its restructuring efforts in the face of increased competition and declining milk consumption.
The Dallas-based company, which owns the Friendly's ice cream brand, posted a first-quarter adjusted loss of $38 million, or 41 cents a share, compared with a profit of $13 million, or 14 cents a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting the company to lose 27 cents a share.
Sales dropped to $374 million from $449 million a year earlier.
"While our results demonstrate that our efforts are beginning to achieve the desired results, there is still much more work to do," Dean CEO Ralph Scozzafava said in a statement, adding that the company continues to explore "potential strategic alternatives to accelerate our business transformation and enhance value for our shareholders."
Dean Foods in February announced plans to restructure and has received roughly half a dozen offers for various parts of its business, including the Friendly's operation, The Wall Street Journal reported on Monday. So far Dean executives have rejected those offers.
Brothers S. Prestley and Curtis Blake founded Friendly's in 1935 with a single storefront in Springfield, Massachusetts. The company makes Land O'Lakes and Country Fresh dairy products, among other items.
Shares of Dean Foods gained 1.19% to $1.70 in early trading on the New York Stock Exchange. The shares gained 10% on Monday in advance of the company's quarterly results.