UPDATE 3-Dean Foods raises Q1 profit outlook
* Raises Q1 EPS view, cites improved commodity environment
* Targets $300 mln in cost savings in next 3-5 years
* Sees double-digit adj EPS growth for next 3 years
* Shares rise 5 percent (Adds background, details, updates share movement)
By Shivani Singh
BANGALORE, Feb 26 (Reuters) - Dean Foods Co (DF.N: Cotización), the largest U.S. dairy company, raised its first-quarter profit forecast, citing improvement in the commodity environment, and said it plans to reduce costs by $300 million over the next three to five years, sending its shares up 5 percent.
An over-supply of milk and inadequate demand has led to milk prices plumetting down more than 50 percent from last year, after hitting life-time highs in 2007. [ID:nN5370249]
"The Class I Mover milk price will decline in March to $9.43 per hundredweight, which is the lowest price in recent memory," Chief Financial Officer Jack Callahan said.
Mover Milk is described as a kind of a base price for which Dean Foods and other dairy companies pay dairy farmers for milk. Continuación...