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Integrator Reports Strongest Performance Since 2005

by 5m Editor
1 May 2007, at 4:06pm

US - Business is booming for integrated food business Tyson Foods. The Arkansas-based company is the world's largest meat, producer processor and marketeer of chicken, beef and pork, and reports increased profits across all sectors for the second quarter 2007.

John Tyson, Chief Executive Officer of Tyson Foods, gestures while answering a question during the Reuters Food Summit in Chicago, March 16, 2005.

Sales were $6.5 billion compared to $6.3 billion for the same period last year. Operating income was $158 million compared to an operating loss of $142 million, and net income was $68 million compared to a net loss of $127 million, for the same period last year.

Pork sales rose to $76 million, beef sales increased $152 million and chicken sales were up by $23 million. Tyson’s value added prepared foods sector also saw growth with sales up by $5 million.

Overall, sales increased 4.0% compared to same quarter last year and he Company continues to be on track to exceed its $200 million Cost Management Initiative in fiscal 2007, said Richard L. Bond, Tyson’s President and Chief Executive Officer.

“Quarterly operating income improved $300 million over the same period last year and all segments were profitable. It has been our strongest performance since the fourth quarter of fiscal 2005. Our beef segment is back in the black, and our pork business is well within our target margin objectives and our Chicken sector showed improvement despite a substantial year-over-year increase in grain costs,” he added.

Good prospects

The pigmeat business accounted for 12.5% of net sales for the six months of fiscal 2007- equating to a sales value of $1.6 billion. Operating income for the same period was $74 million, a consequence of higher than average prices, a strong export trade, increases to volume production and greater business efficiency.

The prepared food segment reports a similar trend with sales valued $646 million forthe second quarter and and $1.3 billion for six months of fiscal 2007. Operating income was $51 million for the same six months and opportunities continue to look promising due to favourable prices and lower raw material costs.

Tyson Food’s produces a wide variety of protein-based and prepared food products marketed under the "Powered by Tyson" strategy. The company is the recognized market leader for both the retail and foodservice markets, providing products and services to customers throughout the United States and more than 80 countries worldwide.

5m Editor