Tyson Foods Q3 Profit Surges On Strong Chicken, Beef Sales

(RTTNews) - Meat products maker Tyson Foods, Inc. (TSN) Monday said profit in the third-quarter surged from the year-ago period, as the company's Chicken segment performed extremely well and the Beef segment rebounded.

Net income attributable to Tyson surged to $249 million from $76 million in the previous year. Earnings per share surged to $0.68 from $0.21.

Adjusted net income per share attributable to Tyson was $0.68, while it totaled $0.50 last year. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Net income per share from continuing operations attributable to Tyson climbed to $0.69 from $0.22.

Sales grew to $8.731 billion from $8.261 billion in the previous year. Analysts expected revenues of $8.65 billion.

Chicken sales climbed 11 percent to $3.158 billion, with volume growth of 4.4 percent and average price increase of 6 percent. The company attributed the volume change to increased domestic and international production, driven by stronger demand for chicken products.

Beef sales were 7 percent higher at $3.723 billion, amid improved demand. Volume grew 3.8 percent, while average prices expanded 2.9 percent. According to Tyson, Fed cattle supplies decreased which drove up average sales price and livestock cost.

Pork sales were nearly unchanged with last year at $1.332 billion. Volume dropped 4.7 percent while average prices rose 4 percent.

Donnie Smith, Tyson's president and CEO, said, "As expected, we are delivering robust results in the second half of our fiscal year. We produced strong earnings of 69 cents per share while investing in our people, processes and new businesses and continuing to buy back stock."

In fiscal 2014, the company expects overall domestic protein production to increase about 1 percent from fiscal 2013.

The recent favorable weather conditions and more ideal planting environment are expected to increase grain supplies in 2014, which should lead to lower input costs as well as decreased costs for cattle and hog producers, Tyson said.

The company expects fiscal 2013 sales to approximate $34.5 billion mostly due to price increases as a result of decreases in domestic availability of certain protein and increased raw material costs. Fiscal 2014 sales are estimated to approximate $36 billion.

TSN closed at $28.51 on Friday and is adding 3.3 percent in pre-market activity.