Chicken and prepared foods were big influencers in Tyson Foods’ second quarter earnings report, partially offsetting the company’s less-than-spectacular beef and pork results.
Sales for the meat processing company increased 4 percent to $10.07 billion, up from $9.6 billion in 2014, just missing the forecasted $10.298 billion predicted by analysts, according to USA Today. Tyson also reported net income of $344 million for the quarter, up from $258 million in 2014.
Donnie Smith, President and CEO, said that Tyson’s prepared foods and chicken segments performed very well during the quarter. The results partially offset soft results in the company’s beef and pork segments.
“Our beef business suffered from export market disruptions that had an $84 million impact on third quarter results, and we continue to see very high cattle costs at a time when product values and export issues are making it difficult to realize expected revenue levels in this spread business,” Smith said in the report.
Smith, though pleased with the business’s performance overall, went on to say that unless beef market conditions improve rapidly, the company will not achieve its previous guidance of $3.30 - $3.40 adjusted earnings per share. Consequently, Tyson is modifying its fiscal 2015 guidance to $3.10 - $3.20 adjusted earnings per share.
Tyson Foods reduced its debt by $688 million during the quarter and plans to initiate a stock buy-back program in the fourth quarter.
Other highlights from the quarter include:
Tyson Foods’ shares fell approximately 10 percent in morning trading following the report.
