Tyson rebounds, posts income of $111 million in Q3

by FoodBusinessNews.net Staff
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SPRINGDALE, ARK — Tyson Foods, Inc. posted net income of $111 million for the third quarter ended June 30, equal to 32c per share on the common stock, up sharply from a loss of $52 million during the same quarter of 2006.

Sales for the third quarter were $6,958 million, up 9% from net sales of $6,383 million during the same quarter of the previous year.

"This was another good quarter for us, and all the credit goes to Tyson team members," said Richard L. Bond, president and chief executive officer. "They’re focused intently on executing our business plants and cost management initiative, and our earnings reflect their work."

Operating income in the chicken segment was $95 million during the quarter, which compared with a loss of $59 million during the same quarter of 2006. Sales in the segment were $2,068 million, an 8% increase compared with $1,922 million during the same quarter of 2006.

Operating income in the beef segment was $33 million, which compared with a $10 million loss during the same quarter of 2006. Sales in the segment were $3,362 million, up 11% from $3,032 million during the same quarter of the previous year.

In the pork segment, operating income rose 208% to $37 million. Sales in the segment were $853 million, up 13% compared with $754 million during the same quarter of the previous year.

In the prepared foods segment, operating income was $26 million, up 100% compared with operating income of $13 million during the same quarter of the previous year. Sales in the segment were $666 million, up 1% from sales of $661 million during the same quarter of the previous year.

In the other segment, operating income was $18 million during the quarter, which was down 5% compared with an operating income of $19 million during the same quarter of 2006. Sales in the segment were $9 million, down 36% compared with sales of $14 million during the same quarter of 2006.

"Sales dollars, operating income and operating margins are greatly improved in all four segments over the third quarter of 2006 as well as the second quarter of 2007," Mr. Bond said. "Sales volumes were down overall, primarily as a result of planned production cuts and the impact of price increases."

For the nine months ended June 30, the company posted a net income of $236 million, compared with a loss of $140 million during the same period of 2006. Sales for the nine months were $20,017 million, up 5% compared with sales of $19,088 million during the same period of 2006.

The company also revised its fiscal year 2007 outlook of earnings per share to the range of 82c to 92c.

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