Tyson 3rd-Quarter Profit Drops 61 Percent

Tyson Foods Inc. said Monday that high grain prices, largely due to the drought affecting much of the nation, contributed to a 61 percent drop in third-quarter profit.

Reporting before the stock markets opened, the Springdale-based meat processor posted earnings of $76 million, or 21 cents per share, for the quarter that ended June 30, down from $196 million, or 51 cents per share, in the same period a year ago.

Earnings fell far below the average estimate of 54 cents per share from 14 analysts surveyed by Thomson Reuters.

Revenue rose a scant 0.73 percent to $8.31 billion.

Beef sales were hit especially hard, with volume falling 13.9 percent and prices increasing 15.2 percent.

Challenging market conditions in the beef and pork segments will result in lower earnings for fiscal 2012 than the company previously projected, Tyson president and CEO Donnie Smith said in a news release.

“Grain costs have been increasing significantly and rapidly, largely as a result of the ongoing U.S. drought,” he said. “While we ultimately expect to pass along rising input costs, these costs, coupled with continued soft demand, are likely to pressure earnings in 2013.”

Smith said the company is focusing on growing its prepared foods segment and international poultry and value-added poultry sales.

Tyson’s shares were trading at $14.70, down 69 cents or 4.5 percent at midday Monday on the New York Stock Exchange. Shares have traded between $14.62 and $21.06 in the past year.