Agricultural News
Tyson Foods Delivers a Profit in the First Quarter of their Fiscal Year
Fri, 05 Feb 2010 7:19:38 CST
Tyson Foods went from a first quarter loss a year ago to being in the black this fiscal year, based on the report issued Friday morning from Tyson Headquarters in Springdale, Arkansas.
The first quarter 2010 Net Earnings per share was $0.42, a record for a first fiscal quarter, as compared to reporting a 27 cent loss per share last year.
The report from Tyson indicates that all operating segments were profitable, with three above their normalized ranges. Tyson has major operations in the poultry, pork and beef markets.
Operating efficiencies for beef and pork were cited as positives, and lower grain costs were welcomed in their poultry division.
Looking forward, the first quarter report offered these insights in the three major protein sources that Tyson is involved in:
Chicken -- We expect seasonal demand will improve as we get further into fiscal 2010, and we expect the pricing environment to improve aided by cold storage inventories and pullet placements which are down relative to the levels we have seen over the last several years. We also currently expect to see grain costs down as compared to fiscal 2009. Additionally, we will continue to focus on making operational improvements to help maximize our margins.
Beef -- While we expect a reduction in cattle supplies of approximately 1% in fiscal 2010, we do not expect a significant change in the fundamentals of our Beef business as it relates to the previous few quarters. We expect adequate supplies to operate our plants. We will manage our spreads by maximizing our revenues through product mix and minimizing our operating costs, while keeping our focus on quality and customer service.
Pork -- We expect to see a gradual decline in hog supplies through the first half of fiscal 2010, which will accelerate into the second half of fiscal 2010, resulting in industry slaughter slightly higher than 2007. However, we still believe we will have adequate supplies in the regions in which we operate. We will manage our spreads by continuing to control our costs and maximizing our revenues.
Click here for the News Release detailing the numbers from today's First quarter report for Tyson.
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