US meat company Tyson Foods today (30 April) raised its outlook for the full year after posting better-than-expected quarterly profits thanks to the positive impact of last year’s cost-cutting programme.
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Tyson posted earnings of US$68m for the second quarter ended 31 March, compared with a year-earlier loss of $127m.
Revenue increased to $6.5bn from $6.25bn, the company said.
“It was our strongest performance since the fourth quarter of fiscal 2005,” chief executive Richard Bond said in a statement. “Our beef segment is back in the black, and our pork business is well within our target margin objectives.”
Tyson’s beef unit posted an operating profit $24m, compared with a year-earlier loss of $188m. Earnings in the pork unit rose to $35m from $9m
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By GlobalDataSpeaking on a conference call, Bond said the increased profitability of Tyson’s beef and pork businesses were the consequence of improved operating efficiencies. Last year, Tyson undertook a $200m cost-cutting program that included job cuts and plant closures.
However, the company’s chicken business has come under pressure from increasing corn prices, which were partially offset by hikes in the price paid for poultry meat by consumers. Operating profit in chicken reached $61m in the quarter.
Tyson raised its fiscal-year outlook to $0.65-$0.90 per share, up from its previous forecast of $0.50-$0.80.
