Tyson turnaround continues

Higher meat prices and better sales of pork and prepared foods improved Tyson Foods Inc. fourth quarter profits despite what company officials called “market headwinds.”

For the three months ended Oct. 30, the Arkansas meat and chicken producer saw fourth quarter earnings of $213 million, or 57 cents per share, compared to a loss of $457 million, or $1.23 per share, a year ago. Fourth quarter sales were $7.44 billion compared to $7.21 billion a year ago.

“Our results this quarter and this year are directly due to our diversified protein business models and our operational improvements, which have raised the level of expectations for Tyson’s performance," Donnie Smith, Tyson Foods president and CEO, said in a statement. "We produced record sales and earnings despite some market headwinds.”

Wall Street analysts on average expected the Springdale meat and chicken giant to report fourth quarter earnings of 56 cents per share on sales of $7.75 billion, according to Thomson Reuters.

Tyson’s meat, pork and prepared food segments saw a huge jump in increased average prices. Beef sales came in at just over $3 billion, propelled by a 14.4% jump in beef prices. Pork sale prices jumped a whopping 41%, while prepared food prices rose 17%. Chicken prices were mostly flat, causing sales to lose ground at $2.61 billion, compared to $2.64 billion a year ago.

Operating income for chicken, beef and pork was $141 million, $121 million and $125 million, respectively.

Going forward, Tyson said it expects chicken, beef, pork and turkey production to increase.

“Because exports are likely to grow as well, we forecast that total domestic availability of protein should be relatively flat compared to 2010,” company official said.

For the year, Tyson Foods saw revenue climb to $28.43 billion versus $26.7 billion in fiscal 2009. Full year earnings topped $780 million compared to a $547 million net loss in the previous year. Earnings per share were $2.06 for the 12 months ended Oct. 3, 2010. Last year, Tyson shareholders lost $1.47 per share.

"We’re just over halfway through our first quarter of fiscal 2011, and it is shaping up to be a strong quarter and another good year," Smith said. "There are always challenging market conditions to manage. That’s the norm in our business, and we’re prepared to address them."

Ahead of Monday’s opening bell, Tyson shares (NYSE: TSN) were headed upward in pre-market trading at $16.27, up 63 cents. Tyson shares have risen nearly 20% over the last year, and the Springdale-based meat and chicken giant touched a 52-week high of $20.57 on April 15.