, a food and beverages company, said its second-quarter earnings fell 64.6%, hurt by charges.
The Dallas, Texas-based company earned $28.87 million, or 21 cents a share, in the quarter, compared with $81.63 million, or 52 cents a share, a year ago. Adjusted for items, the company earned 55 cents a share. Analysts polled by Thomson First Call were expecting earnings of 53 cents a share in the most recent quarter.
Second-quarter revenue declined about 1.6% to $2.48 billion due to the pass through of lower raw dairy input costs, partially offset by strong volume growth at the dairy group and continued strong sales growth at whitewave foods. Analysts were expecting revenue of $2.61 billion.
The company expects to earn 54 cents a share to 56 cents a share in third quarter and reiterated its full year earnings guidance of $2.10 a share to $2.15 a share. Analysts are expecting earnings of 56 cents a share in second quarter and $2.13 a share in 2006.
Net sales from dairy group declined 2.6% to $2.17 billion due to the pass through of lower dairy input costs that were partially offset by a 2.1% increase in fluid milk volumes. Net sales from whitewave foods rose 7% to $307 million driven by strong sales growth in the continuing branded portfolio, partly offset by the SKU reduction activities undertaken late in 2005.
"Our dairy group continues to outperform the industry, increasing marketshare and growing operating profits. At whitewave, our brands continue to demonstrate robust growth, and we believe our supply chain and information technology initiatives are on track to deliver significant operating benefits in the future," the company said.
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