Chicken Prices Boost Tyson Foods’ 1Q Profit (Updated)

Despite facing “headwinds” in the first quarter, Tyson Foods Inc. more than held its own, president and CEO Donnie Smith said in a news release reporting the company’s earnings.

Shortly before the markets opened Friday, the Springdale-based meat processor posted earnings of $173 million, or 48 cents per share, for the quarter that ended Dec. 29, compared to earnings of $156 million, or 42 cents per share, a year earlier.

The company beat the average earnings estimate of 39 cents per share from 12 analysts surveyed by Thomson Reuters.

Revenue rose 0.85 percent to $8.4 billion.

Sales volume in Tyson’s chicken, beef pork segments fell. But even with higher feed costs, operating income for the chicken segment more than tripled, which the company attributed to higher sales prices and improved live performance and operations.

“We knew we’d face headwinds, and that has certainly been the case,” president and CEO Donnie Smith noted in the release. “However, we’re not simply holding our own. We’re producing solid results while preparing for growth.”

In a conference call with investors, Smith said the company has invested more than $40 million in four of its plants, which could create up to 490 jobs.

An expansion in Glen Allen, Va., was recently completed, and expansions in Sherman, Texas, and Goodlettsville, Tenn., are under way. Also, The Bruss Co., a Tyson subsidiary, recently opened in Jacksonville, Fla.

Tyson shares were up 6 cents or 2.71 percent at mid-day, trading at $22.71 on the New York Stock Exchange. Shares have ranged between $14.07 and $22.50 in the past year.

The company is holding its annual shareholders meeting today in Springdale. Shareholders are expected to re-elect a nine-member board, ratify PricewaterhouseCoopers as its independent auditor and vote on two proposed amendments to its pension plan.