Tyson 2nd-Quarter Profit Increases 39 Percent
by May 9, 2016 10:48 am 147 views
Tyson Foods Inc. said Monday that sales growth in key product lines and being more consumer driven contributed to a 39 percent increase in the company’s 2nd-quarter profit.
Reporting before the stock markets opened, the Springdale-based meat processor posted earnings of $432 million, or $1.10 per share, for the quarter that ended April 2, up from $310 million, or 75 cents per share, in the same period a year ago.
Earnings beat the average estimate of 95 cents per share from 10 analysts surveyed by Thomson Reuters.
Revenue fell 8.8 percent, from $9.98 billion to $9.17 billion.
Beef sales decreased 13.5 percent, from $4.13 billion to $3.63 billion, with volume increasing 2.8 percent and prices decreasing 14.2 percent.
While the second quarter is typically the company’s most challenging one of the fiscal year, it set records with its “operating income and return on sales,” Tyson president and CEO Donnie Smith said in a news release.
“Sales are growing in key retail product lines,” he said. This includes products such as “Hillshire Farm smoked sausage and lunchmeat, Jimmy Dean breakfast sausage and Ball Park hot dogs.”
Also, the company’s chicken business has become more consumer driven, changed its mix, improved cost structure and diversified pricing, Smith said.
Tyson’s shares were trading at $70, up $2.75 or 4.1 percent at midday Monday on the New York Stock Exchange. Shares have traded between $39.50 and $70.44 in the past year.
The company repurchased 6.9 million shares for $400 million in the quarter.