Tyson Foods suffers second-quarter loss
May 04, 2009
by MEAT&POULTRY Staff
SPRINGDALE, ARK. — Tyson Foods, Inc. recorded a loss of $104 million during the second quarter of fiscal 2009, ended March 28. The results compared unfavorably to the loss of $5 million the company endured during the second quarter of the previous year.
"Our Chicken segment has been profitable since the end of February, and I am pleased with the consistent progress we are making," said Leland Tollett, interim president and chief executive officer. "Our Beef, Pork and Prepared Foods segments generated financial returns at or near normalized ranges in the second quarter, excluding one-time charges in Prepared Foods."
Revenue for the quarter was $6,307 million, which compared with $6,336 million for the same period during 2008.
Notable items included within the company’s second-quarter results are a $15 million pre-tax charge related to a plant closing; a $10 million pre-tax charge related to the sale of Lakeside Farm Industries; and a $62 million charge related to a change in how the company records its tax rate. During the second quarter, Tyson Foods switched from estimating interim period taxes on an annual basis to a year-to-date method.
For the first six months of fiscal 2009, Tyson Foods lost $216 million on sales of $12,828 million. During 2008 the company had net income of $29 million, equal to 8c per share on the common stock, on sales of $12,812 million.
Mr. Tollett said it is too soon to predict the impact of the H1N1 influenza outbreak on Tyson Foods pork sales.
"At this point, none of our plants are impacted by export bans," he said. "Our multi-protein, multi-sales channel business model puts use in a good position should consumers change which proteins they buy or where they buy them."