SPRINGDALE, Ark. – Growth in the company’s beef and chicken businesses contributed to an 11 percent increase in income during the first quarter at Tyson Foods, Inc.
For the quarter ended Dec. 29, the company had net income of $173 million, equal to 50 cents per share on the common stock, which compared with $156 million, or 43 cents per share, during the same quarter of the previous year. Sales for the quarter were $8,402 million, up 1 percent from $8,329 million.
“Fiscal 2013 is off to a good start,” said Donnie Smith, president and chief executive officer of Tyson Foods. “With earnings of 48 cents per share in the first quarter, we are on our way to producing earnings this year better than fiscal 2012. We knew we’d face headwinds, and that has certainly been the case; however, we’re not simply holding our own. We’re producing solid results while preparing for growth.
“We are being both methodical and innovative in our approach to managing the challenges that come in this business, and our approach is working. I have every confidence in our team’s ability to execute their plans and meet their goals. This is an exciting time at Tyson, and while we’re pleased with the progress we’ve made, we feel like we’re just getting started.”
The chicken segment had operating income of $107 million, up significantly from $32 million during the same quarter of the previous year. Sales for the segment were $2,956 million, up 7 percent from $2,762 million.
Operating income within the beef segment totaled $46 million, up 48 percent from $31 million during the same quarter of the previous year. Sales for the quarter were $3,485, up 1 percent from $3,467 million.
The pork segment had operating income of $125 million, down 32 percent from $165 million during the same quarter of the previous year. Sales for the segment were $1,363 million, down 8 percent from $1,475 million.
The company said in fiscal 2013 it expects overall domestic protein production to decrease about 1 percent from fiscal 2012 levels. The drought has reduced expected grain supplies, which will drive up input costs and costs for cattle and hog producers.
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