Tyson Foods Stock Collapses On Beef, Pork Weakness
US - Stock in Tyson Foods Inc., the world’s largest meat processor, fell Monday after the company said its first-quarter profit fell 19 percent on weaker operating results in its pork and beef businesses.The company also projected fiscal 2006 earnings below Wall Street expectations. In Nebraska, the company’s properties include offices, plants, warehouses, tanneries and other operations in Columbus, Dakota City, Lexington, Madison, Norfolk, Omaha, West Point and York.
Sales were flat at $6.45 billion, as a modest rise in sales of beef did little to offset declines in chicken, pork and prepared foods sales.
Tyson forecast a second-quarter loss and projected fiscal 2006 income of 50 cents to 80 cents per share. Analysts had been expecting 2006 earnings of $1.07 per share.
Beef lost $64 million for the quarter and executives said in a conference call that the segment is expected to have steeper losses in the second quarter.
“Beef was ugly,” John Tyson said. Tyson president and chief operating officer Dick Bond said higher beef prices are not what they seem.
Source: JournalStar
31 January 2006
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