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Sales boom for an excited Tyson

by 5m Editor
31 July 2007, at 1:17pm

ARKANSAS - Tyson Foods, reports earnings of $0.31 per diluted share for the third fiscal quarter ended June 30, 2007. This compared with the loss of $0.15 per diluted share in the same quarter last year.

The company's third quarter 2007 sales were $7.0 billion, compared with $6.4 billion for the same period last year. Operating income was $209 million compared to operating loss of $25 million, and net income was $111 million compared against a net loss of $52 million, for the same period last year.

Product sales continue to rise steadily. Beef increased $330 million, pork was up $99 million, Chicken sales increased $146 million and sales of prepared foods were also up $5 million. Overall Sales and operating income improved versus second quarter fiscal 2007 in all four segments. Revised fiscal 2007 diluted earnings per share are estimated to be $0.82 to $0.92

"This was another good quarter for us, and all the credit goes to Tyson team members," said Richard L. Bond, president and chief executive officer. "They're focused intently on executing our business plans and Cost Management Initiative, and our earnings reflect their work.

"Sales dollars, operating income and operating margins are greatly improved in all four segments over the third quarter of 2006 as well as the second quarter of 2007," Bond said. "Sales volumes were down overall, primarily as a result of planned production cuts and the impact of price increases.

Pork segment sales were $853 million in the third quarter and $2.5 billion,in the nine months of fiscal 2007. Operating income was $37 million and $111 million, respectively, for the same periods. The positive results were largely due to higher average sales prices, strong export sales, increased sales volumes, operating cost efficiencies and yield improvements. These had been partially offset by higher average live prices. The company has recently cut production at six of its Mid West processing plants to counter market pressure.

Mr Bond said it was an exciting time for Tyson Foods. New product lines and advertising campaigns including Raised Without Antibiotics and Any'tizers brands and the 'Thank You, Mom' advertising campaign was helping to boost market presence and raise sales. And the companies new venture into renewable fuels with Syntroleum was also helping promote the business and its brands.

To read the full financial report click here

5m Editor