September 23, 2003
Tyson Revises Up Fourth Quarter Earnings
Tyson Foods Inc., the largest U.S. meat processor, on Monday said it expects earnings in its September quarter to be at least 40 percent higher than Wall Street's forecast, as the ban on Canadian beef has driven up beef demand.
"Our beef segment is having an outstanding quarter and is the principal reason for the better-than-expected results," Chief Executive John Tyson said in a prepared statement.
Tyson, reported that it expects earnings for its fourth quarter ending Sept. 27 to be between 35 cents to 40 cents a share, compared to research which placed earnings at about 25 cents a share. Earnings in fiscal 2004 are forecast at 90 cents to $1.20 a share. Wall Street had expected $1.05 a share on average.
A spokesman for Chicago Equity Partners LLC, whose firm owned 216,000 Tyson shares said: "It's a positive comment. They wouldn't come out with an interim outlook if things weren't going well and the market is going to recognize that tomorrow."
Shares of Tyson rose 9 percent to $14.52 on Instinet in modest volume from a close of $13.30 on the New York Stock Exchange Monday.
On May 20 U.S. borders were closed to Canadian cattle and beef because of a confirmed case of bovine spongiform encephalopathy, known commonly as mad cow disease, a brain-wasting disorder.
In August, the United States resumed some beef imports from Canada, stipulating that the beef come from young cattle which were at lower risk. Live cattle imports remain banned.