Tyson income down 68% in year

by Editor fleischwirtschaft.com
Wednesday, November 12, 2008

With a net income of $86 million for the fiscal year 2007/08, Tyson Foods, Inc. reported a decrease of 68% from the $268 million during the pervious year.

Total sales for the current year showed a slight increas from $25,729 million during the previous year to $26,862 million, up 4%.

The chicken segment had an operating loss of $118 million during the year as the result of increased grain, plant and feed ingredient costs. Sales in the segment were $8.9 billion.

However, for the beef segment an operating income of $106 million was reported during the year with results positively impacted by higher average sales prices and net gains from commodity risk management activities. Sales in the segment were $11.7 billion for the year.

The pork segment showed an operating income of $280 million and was impacted by higher average sales prices and lower average live prices. Sales for the segment were $3.6 billion.

According to Richard Bond, president and chief executive officer of Tyson Foods, the company has been managed for the long term regardless a difficult year in many respects. In fiscal 2008 and early fiscal 2009, three poultry operations in Brazil were acquired, the company entered into majority ownership joint ventures in India and China and is awaiting government approval of a third joint venture in China.