Member access

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

TYSON FOODS, INC. (TSN)

25
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

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

05/06/2013 | 08:35am US/Eastern
Recommend:
0

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

Recommend :
0
React to this article
Latest news on TYSON FOODS, INC.
5d ago TYSON FOODS : "Portable Basket Colony for Growing and Transport and Method of Us..
09/08 TYSON FOODS : New Jimmy Dean® Brand Marketing Campaign Delivers Bits of Brightne..
09/04 TYSON FOODS : Completion of Acquisition or Disposition of Assets, Financial Stat..
09/04 TYSON FOODS : Successfully Completes Tender Offer for The Hillshire Brands Compa..
09/04 TYSON FOODS : and Hillshire Brands Announce Extension of Tender Offer for Shares..
09/04 TYSON FOODS : United States, State of Illinois, State of Iowa, and State of Miss..
09/04 TYSON FOODS : Merger With Hillshire Moves Tyson Forward Faster
08/29 TYSON FOODS : Successfully completes tender offer for hillshire brands company f..
08/28 TYSON FOODS : to Present at Barclays Back-to-School Consumer Conference
08/28 Tyson Foods and Hillshire Brands Complete Merger
Advertisement
Chart
Duration : Period :
Tyson Foods, Inc. Technical Analysis Chart | TSN | US9024941034 | 4-Traders
Income Statement Evolution
Tyson Foods, Inc. : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF