Member access

4-Traders Homepage  >  Shares  >  Nyse  >  Tyson Foods, Inc.    TSN   US9024941034

TYSON FOODS, INC. (TSN)

28
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll news 

Tyson Foods, Inc. : Tyson Earnings Slide as Consumers Trim Meat Spending

05/06/2013 | 09:35am US/Eastern

Tyson Foods Inc. (TSN) posted weaker-than-expected second-quarter earnings, hurt by tightened consumer spending on meat products at grocery stores and restaurants.

Tyson shares fell 4.3% to $23.86 in recent trading Monday after the meatpacker reported a 43% drop in quarterly profit and cut its full-year sales forecast.

The Springdale, Ark., company said U.S. consumers switched to its lower-priced chicken products from beef, pressuring profit margins in its beef division.

"Higher gas prices and the payroll tax, bad weather and economic uncertainty all weighed on consumers," Chief Executive Donnie Smith said on a conference call with analysts Monday.

Tyson, like other meatpackers, also is facing higher commodity costs, as last year's severe U.S. drought led to higher prices for animal-feed grains and tighter supplies of cattle.

For the quarter ended March 30, Tyson reported a profit of $95 million, or 26 cents a share, down from $166 million, or 44 cents a share, a year earlier. Excluding items such as a currency-translation gain and impairment charges on noncore assets in China, adjusted earnings were 36 cents a share in the most recent quarter.

Sales rose 1.8% to $8.42 billion.

Analysts polled by Thomson Reuters most recently had forecast per-share earnings of 45 cents on revenue of $8.58 billion.

Tyson, the biggest U.S. meat processor by sales, said revenue in its beef division rose 2.3% to $3.44 billion, but volumes fell 3.9%.

Chicken revenue increased 6.3% to $3.1 billion on a 6.2% rise in average prices. Volumes edged up 0.1%.

Pork sales fell 4.4% to $1.31 billion as volumes declined 2.2%.

"Overall, food-service traffic is about flat, but people are ordering fewer items when they visit a restaurant, which means volume is contracting by about half a percent," Mr. Smith said.

Operating margin fell to 2.1% from 3.1% as input costs jumped 3.6%.

The company lowered its full-year sales estimate to about $34.5 billion from its previous forecast of $35 billion.

Write to Kelsey Gee at kelsey.gee@dowjones.com and Melodie Warner at melodie.warner@dowjones.com

Latest news on TYSON FOODS, INC.
3d ago TYSON FOODS : to Host Fiscal 4th Quarter 2014 Earnings Conference Call
10/23 TYSON FOODS : Los Angeles Receives 30,000 Pounds of Food from LULAC and Tyson Fo..
10/22 TYSON FOODS : Launches Investor Relations App
10/10 TYSON FOODS : LULAC and Tyson Foods Partner to Donate a Truckload of Protein to ..
10/09 TYSON FOODS : LULAC and Tyson Foods Partner to Donate Five Truckloads of Protein..
10/09 TYSON FOODS : Latino Organization to Donate Thousands of Pounds of Food for Cent..
10/08 TYSON FOODS : Sara Lee® Desserts Sweetens Pound Cake Portfolio with Two New Flav..
10/06 TYSON FOODS : The Jimmy Dean® Brand Sun Character Shines from Coast to Coast Cre..
10/04 TYSON FOODS : LULAC and Tyson Foods Partner to Donate Truckloads of Protein to F..
10/02 TYSON FOODS : CEO Donnie Smith Wows TSU Students on Success, Corporate Culture a..
Advertisement
Chart
Duration : Period :
Tyson Foods, Inc. Technical Analysis Chart | TSN | US9024941034 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF