|
|
| |
| Wed, Dec. 3, 2008 |  |
 |
|
||
| |
Tyson Foods Back In Black Tuesday, Jan 30, 2007 By Kim Souza The Morning News SPRINGDALE - Springdale-based Tyson Foods Inc. saw its first quarter profits rise 46 percent over the same period a year ago, company records show. The gain that ended four straight quarters of losses and is an upturn from 2006 fiscal year loss of $196 million First quarter net income was $57 million, up from $39 million in the same period last year. Total revenue in the quarter was $3.32 billion, up slightly over the $3.12 billion in the comparable quarter. Despite corn prices that are 80 percent higher than a year ago, Tyson Foods CEO Dick Bond said the company should post positive income in the second quarter. The quarter's results outpaced analyst estimates and sent shares of Tyson Foods to $17.94 during the day Monday. The shares (NYSE: TSN) closed Monday at $17.28, up 59 cents, and just shy of its 52 week high of $17.33. Bond credited the company's return to profitability to the company's $200 million annual cost savings which trimmed $44 million in expenses during the first quarter compared to last fiscal year. Improving market conditions also played a role, Bond said. While beef margins improved from a year ago, Bond said the beef segment wasn't yet profitable, losing $23 million in the first quarter compared to a $64 million loss the year before. Beef exports are still only 32 percent of the company's pre-mad cow highs recorded in the fourth quarter of 2003, said Greg Lee, international president for Tyson Foods. Another positive sector for the company was found in pork thanks to strong exports and ready-cooked bacon sales. Pork sales rose 4.4 percent to $827 million on good domestic demand. Export volume increased 31 percent, driven by strong sales to Japan. The chicken segment saw better results on first quarter sales of $1.96 billion with an slight increase in volume. However, overall prices declined 5 percent from the year before. |
