Acquisition Bolsters Tyson Foods 2Q Net Income
by May 13, 2002 12:00 am 75 views
Tyson Foods Inc. said the Springdale company met Wall Street expectations with $65 million in second-quarter net income (or 18 cents a share). That figure was in sharp contrast to the same period last year when Tyson Foods had a loss of $6 million.
The acquisition of beef and pork packing giant IBP Inc. in September boosted Tyson’s sales to $5.84 billion for the fiscal second quarter, which ended March 30. Last year, Tyson had $1.86 billion in sales during the second quarter.
Tyson Foods is the largest U.S. producer of beef, chicken, and pork.
CEO John Tyson said he was “pleased with the performance of our company in this historically difficult quarter and with the progress we’ve made on the integration to date.”
Operating income was $179 million, up from $23 million in the same quarter last year.
Tyson Foods said it expects third-quarter diluted earnings per share in a range of 24 to 28 cents, and it backed its prior outlook for fiscal 2002 diluted earnings per share in a range of $1.10-$1.20.
Tyson Foods’ beef division had second-quarter sales of $2.59 billion, including beef case-ready sales of $174 million and international beef sales of $331 million. Beef segment operating income totaled $14 million. The company said the beef segment suffered somewhat because of seasonally weak domestic sales and poor demand from Japan.
Its poultry sales totaled $1.80 billion in the second quarter, compared with $1.74 billion a year ago, an increase of 3.1 percent. International market pressures, such as Russia’s recent ban on U.S. poultry imports, hurt results by creating a glut of chicken in the U.S. market.
Chicken segment operating income jumped by $89 million to $114 million.
Pork segment second-quarter sales totaled $698 million compared with $40 million in the same period a year ago. Pork case-ready sales were $51 million, and international pork sales were $69 million.
The Prepared Foods segment’s second-quarter sales totaled $732 million compared with $68 million in the same period last year.