September 9, 2010

Tyson Foods posts strong Labor Day sales

Tyson Foods Inc. executives said Wednesday (Sep 8) Labor Day sales volumes were improved from recent years and they expect to continue building upon the company's recent record performance.

Tyson chief operating officer Jim Lochner added that pricing was strong for pork and robust for ground beef over the weekend.

Lochner said the outlook for the company remains positive as protein supplies are likely to remain flat while exports climb. The Springdale, Arkansas, meat producer said that it has had record sales and earnings per share through the third quarter.

The company expects the resumption of poultry exports to Russia to boost results. Tyson had not shipped any chicken to Russia through the third quarter due to a ban on US exports. That ban has since been lifted, and Lochner noted that in prior years Russia had imported roughly 5% of all US poultry production. A Tyson spokesman said its first shipment of poultry to Russia since the ban was lifted was loaded September 2.

While chicken production is likely to increase, beef and pork production will remain flat or dip slightly in 2011, Lochner said, and overall protein supplies will remain below pre-recession levels of 2007-08.

Earlier, Tyson reported an 89% jump in third-quarter earnings last month, citing improved efficiency in its beef, chicken and pork segments.