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Tyson Foods profit falls as plant fires hurt production

Posted by: Admin | Posted on: May 8th, 2017 | 0 Comments


Tyson Foods Inc (TSN.N), the No. 1 U.S. meat processor, reported a 21.3 percent slump in quarterly profit as a fire at two of its plants in the period disrupted chicken production, hurting sales volumes at the company’s second-biggest business.

Net income attributable to Tyson declined to $340 million, or 92 cents per share, in the second quarter ended April 1, from $432 million, or $1.10 per share, a year earlier.

Tyson Foods’ sales fell about 1 percent to $9.08 billion, declining for the fifth time in six quarters but edged past analysts’ average estimate of $9.05 billion, according to Thomson Reuters I/B/E/S.

Excluding items, the company earned $1.01 per share, missing analyst estimates by one cent.

Operating income at Tyson’s chicken unit declined by nearly a third in the quarter, dragging total operating income down by about 19 percent.

“Had it not been for the fires, our Chicken segment return on sales would have been within its normalized range,” Chief Executive Tom Hayes said in a statement.

However, the company raised the average selling prices of its chicken by 4.3 percent, which helped curb the impact of the lower production on the dollar-value of sales.

The Springdale, Arkansas-based company’s shares were down 2.1 percent at $62 in premarket trading. Up to Friday’s close, they had fallen almost 6 percent in the last 12 months.

(Reporting by Sruthi Ramakrishnan and Richa Naidu in Bengaluru; Editing by Savio D’Souza)

Article source: http://feeds.reuters.com/~r/reuters/businessNews/~3/mWRjE4maAbs/us-tyson-foods-results-idUSKBN18419V

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