Tyson Foods posts sales, income gains

Overall sales were up 1.7% and net income reach $105 million for Tyson Foods Inc. in its first fiscal quarter — a big improvement over the $104 million loss reported in the same quarter of 2009.

The Springdale-based global meat processing and distribution company reported Friday morning (Feb. 5) the improved sales numbers that were far better than what Wall Street watchers were expecting. The analysts who watch Tyson Foods predicted per share earnings of 18 cents, and the company delivered earnings of 42 cents per share.

“With more than half a billion dollars in operating cash flow, we generated a record first quarter EPS of $0.42 and drove down net debt by $400 million,” Donnie Smith, Tyson’s president and CEO, said in the earnings statement. "Beef, Pork and Prepared Foods continued to execute well, and Chicken began to show the improvement we’ve been working toward for more than a year.”

The company also posted operating profits during the first quarter in its four segments — something Tyson Foods has not done on a consistent basis.

According to the Tyson Foods earnings report: “Operating income improved due to an increase in sales volume, as well as a reduction in raw material costs that exceeded the decrease in our average sales prices. In addition, we made several operational improvements in fiscal 2009 that allow us to run our plants more efficiently. In the first quarter of fiscal 2010, we received $8 million in insurance proceeds related to the flood damage at our Jefferson, Wisconsin, plant.”

• CHICKEN
Total Sales
Q1 2009: $2.425 billion
Q1 2008: $2.234 billion

Operating profit
Q1 2009: $78 million
Q1 2008: -$286 million

• BEEF
Total Sales
Q1 2009: $2.682 billion
Q1 2008: $2.663 billion

Operating profit
Q1 2009: $119 million
Q1 2008: $0

• PORK
Total Sales
Q1 2009: $815 million
Q1 2008: $878 million

Operating profit
Q1 2009: $62 million
Q1 2008: $55 million

• PREPARED FOODS
Total Sales
Q1 2009: $713 million
Q1 2008: $746 million

Operating profit
Q1 2009: $55 million
Q1 2008: $35 million

Tyson Foods sells its products and services in more than 90 countries and employs 117,000 at more than 400 plants and offices around the world.

The company’s stock (NYSE: TSN), a consistent gainer between 1988 and 2000, has struggled to stay above $15 per share in the past 10 years. The last time it close above $15 was in September 2008. During the past 52 weeks, the share price has ranged from a $14.38 high to a $7.51 low.