Dean Foods lowers FY18 adj. EPS view to 32c-52c from 55c-80c, consensus 66c
"We have a strategic plan that will guide us into the future and remain committed to delivering our target of $150 million in incremental annual run-rate savings through our enterprise-wide cost productivity plan. At the beginning of 2018, we set an aggressive plan focused on executing a robust set of commercial and cost productivity initiatives. We're achieving our objectives in many areas; however, the timing of our network optimization plans has shifted and we now expect to see benefits beginning in the fourth quarter. We're experiencing significantly higher than expected non-dairy inflation along with continued retailer investment in private label which is impacting our branded product mix. Therefore, we now anticipate full-year adjusted diluted earnings per share in the range of $0.32 to $0.52. We are also increasing our full-year free cash flow guidance to be in the range of $40 to $60 million and reducing our full-year capital expenditure guidance to between $125 and $150 million. Upon completion of our enterprise-wide cost productivity plan in 2019, our company will be a much leaner and more agile organization that can better address the current marketplace," concluded Dean Foods CEO Ralph Scozzafava.