Tyson sales top $33B, earnings decline
SPRINGDALE, Ark. – Despite higher fourth-quarter income, income for the full-year at Tyson Foods, Inc. fell 22 percent on challenging commodity markets.
For the year ended Sept. 29, the company had income of $583 million, equal to $1.64 per share on the common stock, which compared with income of $750 million, or $2.04 per share, during the previous year. Sales for the year were $33,278,000, up 3 percent from $32,266,000.
“While fiscal 2012 wasn’t a record EPS, year, I think it was our best year — certainly our best effort to date,” said Donnie Smith, president and chief executive officer. “Our team members didn’t make excuses; they made a difference, and they made money. This allowed us to buy back stock throughout the year, including $50 million in the fourth quarter, and to reinvest in our business at a record level while strengthening our balance sheet. Our strong balance sheet, liquidity position and a desire to return cash to shareholders led the board of directors to declare a special dividend and to increase the regular dividend by 25 percent. The board’s action is reflective of our increased profitability and the investments we’ve made in the company.
“Our accomplishments, reinvestment in our business and record sales in fiscal 2012 were achieved in difficult market conditions. Fiscal 2013 is likely to be equally if not more difficult, but there will always be challenging circumstances in this business. It’s our job to accelerate growth by focusing on innovation, serving our customers and developing our team members, whatever the market conditions may be.”
The Chicken segment had operating income of $446 million during the year, up 171 percent from $164 million during the previous year. Sales for the segment were $11,591 million, up 5 percent from $11,017 million.
Operating income within the Beef segment was $218 million, down 53 percent from $468 million during the previous year. Sales for the segment were $13,755 million, up 2 percent from $13,549 million.
The Pork segment posted operating income of $417 million, down 26 percent from $560 million during the previous year. Sales for the segment were $5,510 million, up 1 percent from $5,460 million.
Net income for the company during the fourth quarter increased 91 percent to $185 million, or 53 cents per share, which compared with income of $97 million, or 27 cents per share, during the same quarter of the previous year. Sales for quarter were $8,373 million, down slightly from $8,404 million during the same quarter of the previous year.