November 9, 2011 / 7:39 PM / 7 years ago

UPDATE 2-Saputo Q2 profit misses estimates

* Q2 EPS C$0.61 vs est. EPS C$0.64

* Q2 rev up 15.5 pct to C$1.79 bln (Compares with analysts’ estimates, adds details)

Nov 9 (Reuters) - Canada’s biggest dairy producer Saputo Inc’s quarterly profit missed market estimates as a stronger Canadian dollar offset higher cheese prices and sales volumes.

In the quarter ended Sept. 30, the cheesemaker’s earnings rose to C$127.1 million ($124.8 million), or 61 Canadian cents a share, from C$125.8 million, or 60 Canadian cents a share, in the same quarter last year.

Revenue for the company, the third largest dairy processor in Argentina and one of the top three cheese producers in the United States, rose 15.5 percent to C$1.79 billion helped by an acquisition.

Analysts on average were looking for earnings of 64 Canadian cents a share on revenue of C$1.78 billion, according to Thomson Reuters I/B/E/S.

In the United States, the average selling price of cheese rose by 44 cents from the same period last fiscal, Saputo said.

Earlier on Wednesday, Dallas-based Dean Foods , the largest dairy company in the United States, posted a $1.6 billion loss as it took a large charge to reflect a lower value for its fresh dairy business.

Montreal-based Saputo, the maker of Stella cheese and Vachon desserts, acquired DCI Cheese Co earlier this year.

Shares of Saputo were trading down 2 percent at C$40.38 on Wednesday on the Toronto Stock Exchange. ($1 = 1.019 Canadian Dollars) (Reporting by Maneesha Tiwari in Bangalore; Editing by Don Sebastian)

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