Dean Foods Company. (Stock Reports).(Company Profile)

Publication: Buyside

Publication Date: 01-MAY-03

Bookmark this article Print this article Link to this article Email this article Digg It! Add to del.icio.us RSS

COPYRIGHT 2003 Adams Business Media

Opinion: Buy

Sub-Industry: Packaged Foods and Meats

INVESTMENT OPINION:

Overview--10-APR-03

We expect sales growth of 2% to 3% in 2003, on higher selling prices and volumes for milk, and increased sales of branded products. Margins should be aided by estimated annual synergy benefits of $150 million stemming from the company's merger with legacy Dean Foods. However, some of the margin gains could be offset, as the company anticipates $190 million in branded product advertising and marketing costs in 2003, up from an estimated $130 million in 2002, and slightly higher raw material costs. Spending is expected to be focused particularly on the company's Silk, Sun Soy, and International Delight brands. Reflecting a 5% reduction in the number of shares outstanding, due to share repurchases, we look for EPS of about $3.14...

Read the full article for free courtesy of your local library.