Tyson Foods Inc. announced record first quarter sales of $10.229 billion, an increase from last year’s results of $9.182 billion. Net income increased from $594 million to $1.632 billion, and the Prepared Foods segment showed an 11.6 percent growth, to $2.292 billion in sales.

“At Tyson Foods, we’re creating a modern food company focused on protein,” said Tom Hayes, Tyson Foods president and chief executive officer. “Building on our momentum from a record year in fiscal ’17, we’re off to a strong start in fiscal ’18. We delivered record adjusted EPS and our second-strongest quarter of operating income in Q1, with operating cash flows of more than $1.1 billion.

“The strength and diversity of our portfolio are evident. We drove solid results in each of our segments - beef, pork, chicken and prepared foods. We grew topline sales, with our retail and food service sales both outpacing the industry. We’re encouraged by the position we’re in today.

“As we look to the long-term, we’re confident in our ability to continue growing the business. Demand for protein continues to rise, and we’re well-positioned to take advantage of that opportunity - and to fulfill our aspiration of sustainably feeding the world.”

Sales volume in the Prepared Foods segment increased primarily from incremental volumes from the AdvancePierre acquisition. Average sales price increased from higher input costs of $45 million and product mix which was positively impacted by the acquisition of AdvancePierre. Operating income increased due to $24 million of Financial Fitness Program cost savings, improved mix and the positive incremental impact of AdvancePierre, partially offset by higher input and freight costs.

Tyson also announced that the company was giving out more than $100 million in one-time cash bonuses to be paid to eligible frontline employees in the second quarter of fiscal 2018, thanks in part to the tax cut that was recent signed into law.

Tyson also cautioned that consumers may face rising costs in the coming year, due in part to rising freight and labor costs. The company is estimating that a shortage of trucks and drivers will add $200 million to the company’s costs this year, reports Marketwatch.

"Freight is a tough one, it's affecting all of our businesses," Chief Executive Tom Hayes said Thursday. "Ultimately, the consumer's going to pay for it at some point."

The company also expects rising wages for its slaughterhouse workers

Source: Tyson Foods Inc., Marketwatch