Dean Foods 2nd-quarter profit jumps 72 percent

CHICAGO (Reuters) - Dean Foods Co (DF.N) posted a 72 percent rise in quarterly profit Wednesday as price increases and savings from job cuts helped offset rising commodity costs.

The company, which also benefited from sales of excess cream and lower interest rates, stood by its full-year earnings forecast.

Dean, the largest U.S. dairy company, said second-quarter profit rose to $48.9 million, or 31 cents a share, from $28.4 million, or 21 cents a share, a year earlier.

Excluding a charge for facility closings, profit was 33 cents a share. Analysts on average had forecast 32 cents, according to Reuters Estimates.

Sales rose 9 percent to $3.10 billion as the company passed on higher dairy costs to its customers.

Dean has been squeezed during the past year by record prices for raw milk and other commodities. It also spent more on marketing in the second quarter in its WhiteWave-Morningstar business, which includes Horizon organic milk and Silk soy milk.

The company has tried to offset higher costs with price increases and by combining units and cutting jobs.

For the year, Dean stood by its forecast for earnings of at least $1.20 per share before special items. It forecast third-quarter earnings of 26 cents to 31 cents a share before unusual items.

Analysts on average expect $1.27 a share for the year and 32 cents a share for the third quarter.