July 31, 2007

Tyson turns in US$111 million profit for fiscal third quarter

US meat processor Tyson Foods Inc. said it earned US$111 million in its fiscal third quarter thanks to rising poultry prices rose and better sales in beef and pork.

Net income was 31 cents a share in the three months ended June 30, compared with a loss of US$52 million, or 15 cents, a year earlier, when bird flu outbreaks abroad severely impacted exports and caused local prices to plunge. The company's performance exceeded expectations of 24 cents a share.

Sales rose 9 percent to US$6.96 billion.

Wholesale breast meat prices in the quarter averaged 44 percent higher than a year ago, enabling Tyson's chicken segment to gain a profit of US$95 million, compared with a loss of US$59 million a year ago.

The quarterly profit was Tyson's third in a row, after three straight losses last year.

The beef sector is also improving after a second quarter of profit, after six consecutive quarters of losses. Beef earned the company US$33 million, up from US$24 million the previous quarter, this is compared with a US$10 million loss a year ago.

Tyson's share prices have gained 51 percent in the past year.