Tyson profit exceeds expectations
Tyson Foods Inc. posted higher-than-expected quarterly results last Monday on strength in its beef, pork and prepared foods businesses which it expects to continue in its new fiscal year.
The company, which is working to improve its chicken business, said all operating segments were profitable in the quarter, with beef, pork and prepared foods within or above historical operating margin ranges.
The world’s largest meat producer reported a net loss of $455 million, or $1.22 a share, for the fourth quarter ended on Oct. 3, compared with a year-earlier profit of $48 million, or 13 cents a share.
Excluding a goodwill im pairment charge for its beef business, Tyson earned 28 cents a share, beating the analysts’ average estimate of 26 cents, according to Thomson Reuters I/B/E/S.
Revenue at the Springdale, AR-based company edged up to $7.21 billion from $7.2 billion. Analysts on average were expecting $6.88 billion.
Tyson, like other meat companies, continues to recover from a rough 2008 and early 2009 when high feed and fuel prices increased production costs and the recession slowed sales in the U.S. and overseas.
In response, Tyson curbed production and negotiated shorter term food service contracts to more quickly pass on higher costs. — WLJ