Tyson Says Profit Up 74% in Q2


Tyson Says Profit Up 74% in Q2
(Tyson Foods)

Tyson Foods Inc. of Springdale (NYSE: TSN) on Monday reported fiscal second-quarter net income of $829 million, up 74.2% from the same quarter a year ago.

On a per-share basis, the company said it had profit of $2.28. Earnings, adjusted for non-recurring costs, came to $2.29 per share.

The results beat Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.83 per share.

The meat producer posted revenue of $13.12 billion in the period, up from $11.3 billion in the same quarter a year ago and higher than the Wall Street forecast of $12.43 billion.

Tyson Foods said it expected its annual revenue would be between $52 billion and $54 billion.

“Our performance in the first half of the year reflects our improving operational execution and strong customer and consumer demand for our brands and products,” Tyson Foods CEO Donnie King said. “Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down by continuing to increase our efficiency, productivity, and bringing more capacity on line. This is all part of our strategy to win with customers and consumers, win with team members and win with excellence in execution.”

The company’s beef segment reported revenue of $5.03 billion, up from $4.05 billion, and operating income of $638 million, up from $445 million. Tyson Foods said demand for beef was up in the second quarter but sales were still down for the first six months, but the average sales price was up.

The chicken segment reported revenue of $4.1 billion, up from $3.55 billion, and operating income of $198 million, up from $6 million. The company said sales increased due to strong demand. Rising costs resulted in an $100 million quarterly increase in feed costs.

The prepared foods segment reported revenue of $2.4 billion, up from $2.2 billion, and operating income of $263 million, up from $217 million. Sales prices increased amid labor challenges and higher operating costs.

The pork segment reported revenue of $1.6 billion, up from $1.48 billion, and operating income of $59 million, down from $67 million. Tyson Foods said the pork market was affected by labor shortages and higher operational costs. 

The international segment reported revenue of $565 million, up from $487 million, and operating income of a negative $2 million, which was an improvement from a negative $15 million. 

 The Associated Press contributed to this report.