November 13, 2007

 

Tyson Foods reports US$32 million profit for fiscal fourth quater

 

 

Tyson Foods Inc reported net income of US$32 million for its fiscal fourth-quarter, or 9 cents a share, compared with a net loss of US$56 million, or 17 cents a share, a year earlier.

 

The company warned fiscal 2008 earnings will be well below analysts' expectations amid tough chicken and beef markets.

 

Results included a US$17 million noncash tax expense whereas results in the year-earlier quarter included US$42 million in restructuring, tax and accounting charges.

 

Revenue rose 6.4 percent to US$6.9 billion from US$6.5 billion.

 

Analysts' mean estimates were for per-share earnings of 10 cents on revenue of US$6.73 billion, according to a poll by Thomson Financial.

 

Gross margin rose to 4.4 percent from 3.5 percent.

 

All four of Tyson's business segments (beef, pork, chicken, prepared foods) were profitable, compared to just one a year earlier. Three of them had higher sales.

 

The prepared foods segment saw sales fall 5.9 percent to US$656 million as volume slumped 8 percent. Volumes fell at the chicken and beef segments by 3.3 percent and 0.3 percent, respectively.

 

Although the company made tremendous progress in fiscal 2007, year 2008 would present some challenging market conditions, said President and Chief Executive Richard L. Bond.

 

The company expects to incur additional increased grain costs of approximately US$300 million in the chicken segment on top of a difficult beef environment.

 

Analysts' estimates put the company's 2008 revenues at US$27.33 billion.