Tyson Nets More than Expected

Despite its current legal battles, Tyson Foods Inc. of Springdale on Jan. 28 reported significant improvements during the fiscal first quarter.

Tyson CFO Steve Hankins announced a first-quarter net income of $126.9 million, or 36 cents per share, compared to last year’s first-quarter figure of $27 million and 12 cents a share.

Tyson’s figures were higher than analysts’ expectations of 34 cents per share.

Tyson completed its biggest acquisition in history with the purchase of IBP Inc. on Sept. 28. That resulted in revenue jumping from $1.77 billion in the first quarter of 2001 to $5.86 billion this year.

Beef is now Tyson’s largest division with the IBP merger. That division produced $2.55 billion in sales. The chicken division had $1.77 billion in sales, up 6.9 percent following the tough industry conditions of 2001.

Shares of Tyson were trading at $12.50 on Jan. 29, up 40 cents from the close of market Jan. 27, the day before its first-quarter report.

The terrorist attacks on the United States on Sept. 11 were mentioned prominently in the conference call. Co-chief Operating Officer Greg Lee said Tyson suffered a dropoff from upscale dining restaurants, airlines and hospitality segments following Sept. 11.

Also, Co-chief Operating Officer Dick Bond said the company’s market share lost significantly in October as a result of the Sept. 11 attacks.

Other slides included the current Japanese ban on U.S. chicken. But Lee expects that segment to gradually improve in the coming months.

One of the brightest spots for Tyson has been its ability to reduce its debt by more than $550 million following its cash tender offer for IBP.

Tyson’s annual shareholders meeting was held Feb. 1 at the Walton Arts Center in Fayetteville.