Tyson To Buy Choctaw, Third Quarter Results

Tyson Foods Inc. on July 28 announced that it will spend $74 million to buy the assets of longtime poultry partner, Choctaw Maid Farmers Inc.

The same day the Springdale meat producer released results for its fiscal third quarter ended June 28. That included $79 million in earnings (23 cents per share), a 26 percent drop from $107 million (30 cents per share) during 2002’s comparable quarter.

Tyson Foods had had $6.3 billion in sales for the recent quarter, a 7 percent increase over $5.9 million for last year’s third period. Operating income fell 19 percent from $247 million during 2002’s third frame to $201 million this summer.

Company executives said during a July 28 conference call that the Choctaw transaction, to be completed in September, isn’t considered an expansion since Tyson already buys all of the Carthage, Miss., firm’s output.

Tyson Foods also said it anticipates lower grain prices in the future and better prices for leg quarters. The company has found new customers in Africa and other regions for poultry previously exported to Russia, which has imposed import quotas and otherwise slowed shipments.

As is its habit, Tyson management didn’t give earnings guidance for the year during the call, but estimated fiscal 2003 revenue at between $24 billion and $25 billion. For 2002, the firm had revenue of $23.4 billion.