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Ranchers.net

You have to do a little math to come up with the amount that chicken gives to earnings. Can Tyson operate below cost in beef and run other plants out of business that compete with it in beef thereby gaining market share and increased market power?


Chicken drives Tyson Q4

DJ Tyson Foods 4Q Net Jumps 48%, But Sales Fall 9.1% >TSN-2-

9:24 AM, November 14, 2005



Tyson's accounting cycle resulted in a 13-week fourth quarter, compared to a

14-week fourth quarter in fiscal 2004.



The company's fourth-quarter chicken sales fell 9.6% from a year earlier, to

$2.09 million. But operating income for its chicken business rose 40%.



Fourth-quarter beef sales dropped 6.3% to $2.95 million, while the beef

business swung to an operating loss of $13 million from an operating profit of

$40 million a year ago.



Tyson attributed the decline in its beef business to export market closures

and Canadian import issues. The company expects fiscal 2006 will present only

gradual recovery in beef sales as those markets begin to open and cattle

supplies improve, but the chicken business will remain solid, it said.



Tyson sees fiscal 2006 earnings of 95 cents to $1.25 a share, while analysts

surveyed by First Call project mean earnings of $1.33 a share. For fiscal 2005,

Tyson earned 99 cents a share, including items which hurt earnings by 2 cents a

share.



Although the company said it expects to post additional losses in the first

quarter, an estimate of the costs wasn't immediately available.



Tyson began a conference call Monday at 9:00 a.m. EST.



Source: Dow Jones Newswires

agriculture.com



Nov 14 (Reuters) -

TYSON FOODS INC. (TSN.N: Quote, Profile, Research)

Latest Forecast* No. of Yr ago



analysts qtr

EPS (diluted, $/shr) 0.28 -- -- 0.19

Net ($ million) 98.0 -- -- 66.0

Sales ($ million) 6,495.0 7,026.8 8 7,149.0



*Source: Reuters Estimates



--The largest U.S. meat company said its fourth-quarter earnings included a non-recurring income tax net benefit of $15 million and $8 million of pre-tax losses related to Hurricane Katrina. The net impact of the two items was a gain of 3 cents a share.



--The company said its pre-tax earnings for the year-ago quarter included costs of $46 million, or 8 cents a share, related to fixed asset write-downs and intangible asset impairments.



--For the latest quarter, eight analysts on average had expected the company to earn 31 cents a share, excluding exceptional items, according to Reuters Estimates. (Reporting by Dhanya Ann Thoppil in Bangalore)



today.reuters.com



Tyson Misses, Guides Lower

By TSC Staff

The Street

11/14/2005



Tyson Foods' (TSN:NYSE - commentary - research - Cramer's Take) fourth-quarter earnings missed Wall Street estimates and the company, which is grappling with a difficult market for beef at home and abroad, guided 2006 lower.



The husbandry farmer earned $98 million, or 28 cents a share, in the latest quarter, including one-time items that boosted EPS by 3 cents. Analysts were forecasting earnings of 30 cents a share in the quarter. A year ago, Tyson earned $66 million, or 19 cents a share.



Sales fell to $6.5 billion in the latest fourth quarter, which had 13 weeks, from $7.1 billion in the year-ago quarter, which had 14 weeks. Analysts were forecasting sales of $7.03 billion in the most recent quarter.



By segment, chicken sales totaled $2.09 billion in the latest quarter compared with $2.31 billion a year ago; beef sales were $2.95 billion compared with $3.15 billion; and pork sales were $763 million compared with $889 million.



For 2006, Tyson expects to earn 95 cents to $1.25 a share. Analysts were forecasting $1.33 a share.



"We are encouraged by recent developments in export market access, but fiscal 2006 will present only gradual recovery in beef as those markets begin to open and cattle supplies improve," Tyson said. "As domestic hog supplies continue to improve, the pork segment should generate more normal returns. We expect our chicken business to remain solid, and our Prepared Foods' segment market share to improve."



The stock last traded at $18.50, or 14.8 times the high end of next year's guidance.



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