Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Tyson Foods, Inc.    TSN

Delayed Quote. Delayed  - 08/26 10:00:28 pm
75.09 USD   -0.50%
08/24 Tyson Foods to Webcast Barclays Conference Presentation
08/19 SHELTER STORIES : Cruel and unusual practices
08/18 TYSON FOODS : And Chicago Urban League Announce Chicago As Next City..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Pig virus squeezes Hillshire profits; sausage prices to increase

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/03/2013 | 01:15am CEST

Hillshire Brands Co (>> Hillshire Brands Co) said this week that cases of a virus deadly to baby piglets were growing and the company was increasing meat prices to combat rising commodity costs tied to the disease.

Hillshire Brands Co (>> Hillshire Brands Co) said this week that cases of a virus deadly to baby piglets were growing and the company was increasing meat prices to combat rising commodity costs tied to the disease.

The Chicago-based maker of Jimmy Dean sausages and Ball Park hot dogs was one of the first companies to state publicly that the porcine epidemic diarrhoea virus, or PEDv, was hurting its bottom line - and it will not be the last, analysts said.

Hillshire's net sales increased 1 percent to $984 million (617.7 million pounds), but operating income declined by 35 percent, pressuring margins.

"As we've moved into the second quarter, we've begun to take additional pricing actions," Hillshire President Sean Connolly said, adding that sales volumes could decline as consumers adapt to higher prices at the grocery store.

Analysts will be closely watching for signs of PEDv when other major meat companies such as Tyson Foods Inc (>> Tyson Foods, Inc.) and Hormel Foods Corp (>> Hormel Foods Corporation) report earnings later this month.

Archer Daniels Midland Co (>> Archer Daniels Midland Company) said this week the disease had not had a significant impact on demand for soybean meal, a widely used feed in hog diets.

Hillshire's fiscal quarter that ended September 28 would be the first to take into account the PEDv disease, discovered in the U.S. hog herd in May and thought to affect hundreds of thousands of the 68 million hog herd. It typically takes hogs about six months to reach slaughter-ready weights.

The incurable disease causes diarrhoea, vomiting and dehydration in hogs, killing as many as 80 percent of piglets that contract it. The disease not does affect humans and is not a food safety concern.

Fewer instances of the disease were seen during the hot summer months, but cases are rising again with the onset of cooler weather, experts said. In North Carolina, which trails only Iowa in the number of hogs it produces, 250 swine farms have tested positive, the state's director of livestock health told Reuters.

Hillshire's chief financial officer, Maria Henry, said in a conference call with analysts that the number of instances of PEDv was increasing, driving up prices for hogs.

"We are heavily affected with what's going on there," she said. "We had a spike early, and then the number of reported cases was coming down. Now the number of reported cases is going back up. That's wreaked a bit of havoc on that piece of the market, particularly around pork and sows."

Benchmark lean hog futures shot to nearly two-year highs at the Chicago Mercantile Exchange after the outbreak.

Prices for live sows are up 27 percent from a year ago, while wholesale prices for hams on Friday hit $89.30 per cwt - just below the record high levels seen in 2008, according to U.S. Agriculture Department data.

Pork prices typically decline early in the autumn as the arrival of mild temperatures and freshly harvested corn and soybeans speed weight gain in the animals, creating more supply.

The worst may be yet to come. Animals contracting the disease in the autumn may not be available in the spring when demand hits its yearly peak before summer grilling season.

"We will see the most significant impact in the spring," said Dan Norcini, an independent livestock trader. "You are going to see a reduction in the number of slaughter-ready hogs in the time frame pork demand begins to increase."

(Adds dropped word in last paragraph)

(Additional reporting by P.J. Huffstutter in Chicago and Lisa Baertlein in Los Angeles; Editing by Peter Cooney)

By Michael Hirtzer

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TYSON FOODS, INC.
08/24 Tyson Foods to Webcast Barclays Conference Presentation
08/19 SHELTER STORIES : Cruel and unusual practices
08/18 TYSON FOODS : And Chicago Urban League Announce Chicago As Next City For KNOW Hu..
08/17 TYSON FOODS : Why should we vote for a liar?
08/16 TYSON FOODS : fined $263,000 after amputation at Texas plant
08/16 Biz quicks
08/11 TYSON FOODS : Video showing cruelty at Tyson chicken farms prompts firings
08/08 Tyson Foods, Inc. Announces Quarterly Dividend
08/08DJMARKET SNAPSHOT : Stocks Back Off All-time Highs As Health-care Stocks Slump
08/08DJMARKET SNAPSHOT : Stocks Retreat From Records As Health-care Stocks Slump
More news
Sector news : Animal Slaughtering & Processing
08/25DJGENERAL MILLS : Lines Up Its Next Leader -- WSJ
08/24DJGENERAL MILLS : Grooms Jeff Harmening as Next CEO
08/23 DANONE : Lactalis ready to discuss milk prices with angry French farmers
08/23DJJ M SMUCKER : Smucker Reports Sales Decline
08/23DJIOI BHD : Malaysia's IOI Corp Swings to Loss in 4Q
More sector news : Animal Slaughtering & Processing
News from SeekingAlpha
08/25 Dancing With TINA
08/23 2016 IPO PROSPECTS : Blue Apron Cooking Up An IPO
08/22 TYSON FOODS : A Stock For Long-Term Investors
08/18 Are You On Top Of Earnings Season?
08/09 Tyson's Margin Upside Is Limited
Advertisement
Financials ($)
Sales 2016 37 115 M
EBIT 2016 2 947 M
Net income 2016 1 788 M
Debt 2016 5 824 M
Yield 2016 0,80%
P/E ratio 2016 16,65
P/E ratio 2017 15,66
EV / Sales 2016 0,90x
EV / Sales 2017 0,89x
Capitalization 27 592 M
More Financials
Chart TYSON FOODS, INC.
Duration : Period :
Tyson Foods, Inc. Technical Analysis Chart | TSN | US9024941034 | 4-Traders
Full-screen chart
Technical analysis trends TYSON FOODS, INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 82,2 $
Spread / Average Target 9,5%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Donald J. Smith Chief Executive Officer & Director
Thomas P. Hayes President
John H. Tyson Chairman
Dennis Leatherby Chief Financial Officer & Executive Vice President
Kevin M. McNamara Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TYSON FOODS, INC.40.80%27 592
HORMEL FOODS CORP-4.10%20 092
BRF SA-0.18%13 395
HENAN SHUANGHUI INVEST..--.--%12 122
WH GROUP LTD38.90%11 466
PILGRIM'S PRIDE CORPOR..3.40%5 813
More Results