Feb. 26--Coming off one of the strongest quarters in its history, Dean Foods Co. boosted its 2009 first-quarter earnings forecast by 8 percent on Thursday.

The company, which recently reported fourth-quarter net income of $66.4 million, increased its first-quarter earnings-per-share guidance to at least 41 cents per share from its prior guidance of at least 38 cents per share.

The company, which is benefiting from falling prices for raw milk, also upped its full-year 2009 prediction to at least $1.55 per share. That would be a gain of at least 19 percent from the $1.30 posted in 2008. Earlier this month, the company said it was looking at earnings of at least $1.50 per share this year.

"Based on our analysis of the January results and what looks to be, based on preliminary reports, a solid February, the quarter will likely be even stronger than we initially thought," chief financial officer Jack Callahan said in a statement.

In a report to analysts and investors, the Dallas-based dairy giant also said that over the next three to five years, it plans to cut costs by $300 million.

The savings would come in part from using new routing and monitoring technologies across its national delivery network to improve performance and efficiency.

The company also plans to simplify its product portfolio "to reduce complexity" and save money in procurement. The company did not say which products it would cut in its collection, which sells more than 50 brand names.

Dean is also looking at consolidating production plants but did not give details.

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