UPDATE 3-Dean Foods posts higher profit; outlook disappoints

* Q2 Adj EPS 43 cents, matches Wall St view

* Sees Q3 EPS of at least 30 cents

* Sees '09 EPS at least $1.60; prior view at least $1.55

* Shares slump 11.4 percent (Adds analyst comment, updates share price)

CHICAGO, Aug 5 (Reuters) - Dean Foods Inc (DF.N) posted a 31 percent increase in quarterly profit on Wednesday, helped by lower costs for raw milk and other commodities, but offered a disappointing full-year outlook, sending its shares down more than 11 percent.

The company forecast 2009 earnings of at least $1.60 per share, excluding special items, up from its May outlook of $1.55. Analysts on average were expecting $1.67.

Credit Suisse analyst Robert Moskow was disappointed in the forecast, entitling his research note: "That's All?"

"Management sounds a little conservative given the huge upside that the company is enjoying from record low dairy costs," he said in the note.

Dean, which makes its namesake dairy products and Horizon Organic milk, reported second-quarter profit of $64.1 million, or 38 cents a share, compared with $48.9 million, or 31 cents a share, a year earlier.

Excluding one-time items, earnings were 43 cents a share, matching analysts polled by Reuters Estimates.

Quarterly sales fell 14 percent to $2.68 billion, missing analysts' expectations of $2.80 billion.

Sales for Dean's Whitewave-Morningstar line, which includes Silk Soymilk, Horizon Organic, International Delight and Land of Lakes brands, fell 5 percent.

However, the company's Fresh Dairy Direct segment, which includes the company's namesake brand among others, saw a 9 percent increase.

Dean said it expected adjusted earnings of at least 30 cents per share in the third quarter. Analysts were expecting 34 cents.

Its shares fell 11.4 percent to $18.91 in morning trading on the New York Stock Exchange. (Reporting by Ian Sherr, editing by Gerald E. McCormick and Maureen Bavdek)