TYSON FOURTH QTR PROFIT UP 50 PERCENT
Nov 11, 2008
Tyson Foods Inc. reported a 50 percent increase in fiscal fourth-quarter net income as strength in the company’s beef and pork segments more than offset losses from the poultry business. For the quarter ended Sept. 27, the world's largest meat processor posted net income of $48 million, or 13 cents a share, up from $32 million, or 9 cents, a year earlier. The latest results included a 1-cent profit from discontinued operations and a 2-cent restructuring charge. Revenue rose 9.5 percent to $7.2 billion. Gross margin rose to 5 percent from 4.7 percent. In the companies two biggest markets, beef sales increased 4.6 percent to $3.1 billion despite a 7.5 percent volume decline, while chicken sales rose 12 percent to $2.38 billion on higher volumes prices. Pork and prepared food revenue climbed 21 percent and 9.1 percent, respectively. But the chicken segment swung to a quarterly loss on increased grain costs. The beef division's profits surged to $159 million from $5 million, a year ago on increased prices and a $77 million net gain from a live cattle futures contract. The pork segment's profit more than doubled amid record margins.