Tyson Foods earnings jump
Posted: Monday, February 7, 2011 6:01 pm
SPRINGDALE, Ark. (AP) — Tyson Foods’s net income jumped 86 percent in its fiscal first quarter, helped by improving chicken sales and rising prices for beef and pork, the meat producer said last week.
Tyson shares climbed 8 percent to $18.95 in premarket trading Friday.
The improvement is a strong signal the meat producer, based in Springdale, Ark., has recovered from an industry downturn brought on by a combination of higher production costs and slumping demand as shoppers cut spending.
Results improved across all segments, including chicken, beef and pork. The average price of chicken fell less than 1 percent, but that was offset by a 16 percent increase in beef prices and a nearly 24 percent rise in pork prices.
Chicken volume rose 8 percent, beef volume edged up nearly 1 percent and pork volume rose about 6 percent.
In 2011, the company expects its production to increase slightly, but not outpace export growth.