Pork and chicken units spur Tyson earnings gain

by Staff
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SPRINGDALE, ARK. — Strength in the pork and chicken businesses spurred a 4% increase in income for Tyson Foods, Inc. during the second quarter.

For the quarter ended March 31, the company had income of $166 million, equal to 47c per share on the common stock, which compared with income of $159 million, or 43c per share, during the same quarter of the previous year.

“Our multi-protein business again proved advantageous, producing solid earnings for the fiscal second quarter,” said Donnie Smith, president and chief executive officer. “We are pleased with the rate of improvement in our chicken business. The chicken, pork and prepared foods segments all were in or above their normalized operating margin ranges while beef essentially broke even despite extremely challenging market conditions.

“We’re positioned for another great year as we expect to gain momentum in our third and fourth quarters. We still think we have the potential for earnings per share of $2 for the year if we execute as planned.”

The chicken segment had an operating income of $145 million for the quarter, up 74% from $37 million during the same quarter of the previous year. The segment had sales of $2,911 million, up 6% from $2,739 million.

The beef segment suffered an operating loss of $1 million, which compared with an operating income of $94 million during the same quarter of the previous year. The segment had sales of $3,369 million, up 1% from $3,333 million.

The pork segment had an operating income of $115 million, down 21% from $146 million during the same quarter of the previous year. Sales for the segment were $1,372 million, down 1% from $1,384 million.

For the six months the company as a whole had income of $322 million, 90c per share, down 30% from $457 million, or $1.24 per share, during the same period of the previous year. Sales for the six months were $16,597 million, up 6% from $15,615 million.

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