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Today 1/30/2006 11:42:00 AM
Tyson Calls Beef Market 'Ugly,' Sees Leading To 2Q Loss
A strike at one of its Canadian plants cost Tyson $9 million in the first quarter. Higher energy expenses also contributed to quarterly net earnings of $39 million, or 11 cents a share, compared with $48 million, or 14 cents a share, a year earlier.
Tyson's near-term guidance is for a "difficult" time. "Chicken will be tough going forward, beef continues to struggle...and pork should be OK but fall short of expected returns," Chairman and Chief Executive John Tyson said on the call. He spoke of a "continued tough environment" for the Springdale, Ark., company.
Elaborating on the outlook for chicken, President Bond said that prices have softened but grain costs "appear in good shape. Demand will be the key factor going forward, domestically and internationally."
Overseas consumer concern about avian influenza, which originates in poultry, contributed to a downtick in chicken sales in the fiscal first quarter.
Executives disclosed that Tyson was in due diligence talks with an unnamed Chinese poultry company.
Tyson executives also said they are taking a hard look at Brazil, for possible acquisitions of plants or "green fields" for a startup facility.
The company's CEO said he hoped to be able to announce the appointment of a new chief financial officer soon. Tyson has been operating with an interim CFO.
Tyson Calls Beef Market 'Ugly,' Sees Leading To 2Q Loss
A strike at one of its Canadian plants cost Tyson $9 million in the first quarter. Higher energy expenses also contributed to quarterly net earnings of $39 million, or 11 cents a share, compared with $48 million, or 14 cents a share, a year earlier.
Tyson's near-term guidance is for a "difficult" time. "Chicken will be tough going forward, beef continues to struggle...and pork should be OK but fall short of expected returns," Chairman and Chief Executive John Tyson said on the call. He spoke of a "continued tough environment" for the Springdale, Ark., company.
Elaborating on the outlook for chicken, President Bond said that prices have softened but grain costs "appear in good shape. Demand will be the key factor going forward, domestically and internationally."
Overseas consumer concern about avian influenza, which originates in poultry, contributed to a downtick in chicken sales in the fiscal first quarter.
Executives disclosed that Tyson was in due diligence talks with an unnamed Chinese poultry company.
Tyson executives also said they are taking a hard look at Brazil, for possible acquisitions of plants or "green fields" for a startup facility.
The company's CEO said he hoped to be able to announce the appointment of a new chief financial officer soon. Tyson has been operating with an interim CFO.