Tyson income flat in second quarter
May 9, 2011
SPRINGDALE, ARK. — With higher feed costs offsetting improved demand and higher meat prices, Tyson Foods, Inc. posted flat income during the second quarter.
For the quarter ended April 2, the company had income of $159 million, equal to 42c per share on the common stock, unchanged from the second quarter of fiscal 2010. Sales for the quarter were $8,000 million, up 16% from $6,916 million during the same quarter of the previous year.
“Overall, it was a solid quarter, and I’m pleased with the results,” said Donnie Smith, president and chief executive officer. “We produced record sales for the second quarter on substantially higher sales prices in addition to increased volume. All segments except chicken were within or above their normalized operating margin ranges. While chicken was well below its normalized range, it was profitable, and we believe it will continue to be profitable in the third and fourth quarters. Our beef segment remains solid, and our pork segment continues to produce outstanding returns. Prepared foods is moving in the right direction, and we’ve got more work to do in this segment.
“Most exciting to me is that we still have a significant amount of opportunity to increase profitability throughout Tyson Foods. We will continue to face challenging and volatile market conditions in fiscal 2011, but we maintain our belief that earnings should be comparable to 2010 due to our on-going operational improvements and focus on execution.”
For the six months ended April 2, the company had income of $457 million, or $1.20 per share, up 43% from $319 million, or 84c per share, during the same period of the previous year. Sales for the six months were $15,615 million, up 15% from $13,551 million during the same period of the previous year.
For the full-year 2011 the company expects sales to exceed $32 billion as the result of price increases associated with the rising raw material costs.