Pork and poultry operations drive profits at Tyson Foods
Tyson Foods saw net profit rise 4.4% in the second fiscal quarter, ending March 31, at US$ 166 million, or 44 cents per share. In the same period in 2011, net profit was US$ 159 million, or 42 cents per share. The result was mainly due to earnings from its pork and chicken operations.
The company says it benefited from higher prices for chicken (6.3% up) and strong demand for pork abroad. On the other hand, in the same period, the beef industry has been hampered by safety concerns, including controversy over an additive which has been dubbed by some critics ‘pink slime.’ The beef segment made a loss of US$ 1 million, with sales down by 11% on the second fiscal quarter of 2011.
"Chicken, pork and prepared foods earned above-average margins, but really the meat segment had a very difficult period," said Donnie Smith, president of Tyson. He expects a return to strong performance over the next two quarters, which should generate earnings of US$ 2 per share for 2012. Tyson's net revenue increased by 3.4% to US$ 8.3 billion, while its operating margin fell to 3.7% from 3.8% in the second quarter of 2011.
Information provided by Valor Economico