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May 6, 2019

Business News | Tyson Foods profit beat on higher demand for beef, prepared foods

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(Reuters) - Tyson Foods Inc on Monday reported quarterly profit that beat Wall Street estimates, boosted by higher sales of its beef and prepared foods segment, which includes Hillshire Farm meat products.
FILE PHOTO: Tyson Foods brand frozen chicken wings are pictured in a grocery store freezer in the Manhattan borough of New York City, U.S. May 11, 2017. REUTERS/Carlo Allegri/File Photo
The maker of Ball Park hot dogs and Jimmy Dean sausages said average prices for beef rose 2.3 percent in the quarter, while those for pork fell 8.3 percent despite a 1 percent rise in volume of sales.
“Both the beef and pork segments were solid performers, while the chicken segment is poised for improvement following what we believe are its margin lows for the year,” said Chief Executive Officer Noel White.
Average prices of chicken were down 11 percent in the quarter.
The company reiterated its earnings forecast for the year, but said that it did not have clarity on the impact of African swine fever that has rapidly spread in China since August.
The fever kills almost all pigs infected, though it is not harmful to people.
“Looking ahead, African swine fever has the potential to impact the global protein industry on a level that we have never experienced, and it is an event that will underscore the power of the Tyson business model,” White said.
Net income attributable to the company rose to $426 million, or $1.17 per share, in the second quarter ended March 3, from $315 million, or 85 cents per share, a year earlier.
Excluding items, the company earned $1.20 per share, beating the average analysts’ estimate of $1.14 per share.
Tyson’s quarterly sales rose 6.9 percent to $10.44 billion. Analysts on average had expected $10.29 billion, according to IBES data from Refinitiv.
Reporting by Nivedita Balu and Aishwarya Venugopal in Bengaluru; Editing by Shailesh Kuber

Source: Reuters

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