•  9M earnings up 29.8%
  •  Operating profit boosted by chicken, beef units
  •  Sales rise 3%
Tyson earnings boosted by lower losses from discontinued business

Tyson earnings boosted by lower losses from discontinued business

US meat group Tyson Foods has booked an increase in profits and sales for the first nine months of its financial year.

In a regulatory filing released today (5 August), Tyson said net earnings rose to US$517m in the period to 29 June, up from $398m in the comparable period of last year. The bottom line benefited from lower losses from discontinued operations compared to last year.

Operating profit increased to $959m, up from $932m in the first nine months of 2012. The company said its operating result was lifted by a "record" result from the group's chicken business and a rebound in profitability at Tyson's beef unit. 

Sales were also up, climbing 2.9% to $25.48bn from $24.74bn last year.

"We are delivering robust results in the second half of our fiscal year," said president and CEO Donnie Smith. "We see a tremendous amount of opportunity in our business."

Show the press release
Tyson Delivers Strong EPS of $0.69 From Continuing Operations; Chicken Surges to Record Earnings and Beef Rebounds

SPRINGDALE, Ark., Aug. 5, 2013 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN), today reported the following results:

         
(in millions, except per share data) Third Quarter Nine Months
  2013 2012 2013 2012
Sales $8,731 $8,261 $25,480 $24,740
Operating Income 419 342 959 932
         
Income from Continuing Operations 249 79 589 411
Loss from Discontinued Operation (4) (6) (70) (16)
Net Income 245 73 519 395
Less: Net Income (Loss) Attributable to Noncontrolling Interest (4) (3) 2 (3)
Net Income Attributable to Tyson $249 $76 $517 $398
         
Net Income Per Share from Continuing Operations Attributable to Tyson $0.69 $0.22 $1.61 $1.11
AdjustedNet Income Per Share from Continuing Operations Attributable to Tyson $0.69 $0.51 $1.56 $1.40
         
Net Income Per Share Attributable to Tyson $0.68 $0.21 $1.42 $1.07
Adjusted1 Net Income Per Share Attributable to Tyson $0.68 $0.50 $1.52 $1.36
         
Adjusted EPS is explained and reconciled to comparable GAAP measure at the end of this release.
         

Third Quarter Highlights

  • EPS from continuing operations was $0.69 compared to $0.51 last year on an adjusted basis
    35% increase on adjusted basis, or 214% increase on GAAP basis
  • Record Sales of $8.7 billion
  • Overall operating margin was 4.8% 
    Record Chicken segment earnings of $220 million
      - 
    7.0% operating margin
    Beef segment rebounded with earnings of $114 million, or 3.1% operating margin
  • Repurchased 4 million shares for $100 million
  • Liquidity totaled $2 billion at June 29, 2013

"As expected, we are delivering robust results in the second half of our fiscal year." saidDonnie Smith, Tyson's president and chief executive officer. "We produced strong earnings of69 cents per share while investing in our people, processes and new businesses and continuing to buy back stock. Our Chicken segment achieved record operating income, and our Beef segment rebounded to generate solid returns.

"We see a tremendous amount of opportunity in our business. I am very proud of the team because I'm seeing good long-term decision making to sustain us in the future, and that gives me confidence."

Original source: Tyson Foods