Tyson income jumps in second quarter

by FoodBusinessNews.net Staff
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SPRINGDALE, ARK. — Tyson Foods Inc. posted net income of $68 million for the quarter ended March 31, equal to 20c per share on the common stock, which compared with a loss of $127 million during the same quarter of the previous year.

"Quarterly operating income improved $300 million over the same period last year," said Richard L. Bond, president and chief executive officer. "All segments were profitable, and it was our strongest performance since the fourth quarter of fiscal 2005. Our beef segment is back in the black, and our pork business is well within our target margin objectives. Chicken showed improvement despite a substantial year-over-year increase in grain costs."

Sales during the quarter were $6,501 million, up 4% from $6,251 million during the same period of the previous year.

Sales in the chicken segment were $2,033 million, which compared with $2,010 million during the same quarter of the previous year. Beef sales totaled $3,006 million, up from $2,854 million during the same quarter of 2006, and pork sales were $805 million, up from $729 million from the same quarter of the previous year. Additionally, the prepared foods segment had sales of $646 million, up from $641 million during the same quarter of 2006.

For the six months ended March 31, Tyson’s net income was $125 million, or 37c per share, which compared with a loss of $88 million during the same six months of the previous year. Sales for the six months were $13,059 million, up 3% from $12,705 million during the same quarter of the previous year.

"The company continues to strengthen and gain momentum across all core businesses by accelerating innovation and driving operational discipline," Mr. Bond said. "Some important milestones we reached include unveiling our new Discovery Center, our renewable energy strategic alliance and our progress toward the $200 million cost management initiative target, which we are confident we will exceed."

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