Tyson Foods Sees Quarterly Net Income Slip

Struggles in all major segments of its business led Tyson Foods to a lower quarter of net income.

The Springdale-based meat giant posted second quarter earnings of $95 million, down from $166 million one year ago. Revenues for Tyson Foods rose to $8.42 billion, up from $8.27 billion in last year’s second quarter.

“Our second quarter typically is our most challenging, and this quarter was no exception,” said Donnie Smith, Tyson Foods’ president and CEO. “However, our business is structured to withstand adverse conditions, and we worked through the issues while positioning ourselves for what we believe will be a strong performance in the second half of the year.. .I’m still confident our results for 2013 will be better than 2012.”

Tyson saw big slides in all four of its major segments: chicken, beef, pork and prepared foods.

“In our Chicken segment, we continued to emphasize operational efficiencies, upgrading our product mix and pricing to offset $165 million in additional feed costs for the quarter. Our Beef segment suffered margin compression as consumers opted for the relative value of chicken. Our Pork segment faced periods of supply and demand imbalance after the loss of some export markets, while soft demand in food service impacted our Prepared Foods segment,” said Smith.

For the first six months of the current fiscal year, Tyson Foods has recorded net income of $268 million on revenue of $16.82 billion. One year ago, the company had profits of $322 million on revenue of $16.59 billion.

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