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Chicken profits lead to third quarter rebound for Tyson Foods
Increased profits in chicken have helped Tyson Foods surpass third-quarter revenue expectations.
The company’s third quarter net sales were $13.35 billion, up 1.6%.
In a conference call Monday, company officials said adjusted operating income for chicken topped $307 million, for its best quarter in eight years. The turnaround comes after Tyson reported a $63 million loss a year ago.
President and CEO Donnie King says the improvement is a sign of better market conditions and lower grain costs for feed. The company says it is working to better align chicken supply with customer demand.
Pork income also topped $22 million in the third quarter, driven by ample supplies and solid demand.
Prepared foods also were in line with the company’s expectations at $203 million, though still down from $220 million reported one year ago.
Tyson says its beef business continued to struggle, with tight U.S. cattle supplies and higher costs The company projects to lose $300 to $400 million this fiscal year.
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