Softer beef results bog down Tyson income
Feb. 3, 2012
SPRINGDALE, ARK. — Disappointing results in the beef segment were a factor contributing to a 48% decrease in income during the first quarter for Tyson Foods, Inc.
For the first quarter ended Dec. 31, 2011, the company had income of $156 million, equal to 42c per share on the common stock, which compared with income of $298 million, or 78c per share, during the same quarter of the previous year. Sales for the quarter were $8,329 million, up 9% from $7,615 million during the same quarter of the previous year.
“Even with higher feed ingredient costs, our Chicken segment returned to profitability in the fiscal first quarter on improved pricing and execution,” said Donnie Smith, president and chief executive officer. “Prepared Foods had a strong performance, and the Pork segment continued to produce outstanding results. Our Beef segment is experiencing a rough patch as a result of challenging market fundamentals. Although we are still outperforming industry indexes, if current conditions continue our Beef results will be pressured in our second quarter.
“Our Q1 results demonstrate that we are competitive and that our multi-protein, multi-channel, multi-national business puts us in a position to deliver sustainable earnings over time.”
During the quarter, the Chicken segment posted operating income of $32 million, down 82% from $181 million during the same quarter of the previous year. The segment had sales of $2,762 million, up 5% from $2,619 million.
Operating income within the Beef segment fell 73% to $31 million from $116 million during the same quarter of the previous year. The segment had sales of $3,467 million, up 9% from $3,185 million.
The Pork segment had operating income of $165 million, down 7% from $177 million during the same quarter of the previous year. Sales were $1,475 million, up 19% from $1,238 million.
The Prepared Foods segment had income of $51 million, up 82% from $28 million during the same quarter of the previous year. Sales for the segment were $861 million, up 7% from $806 million.