Chicken segment returns to profitability in Tyson's Q1 results
Tyson Foods Inc. reported its results for the first quarter of the fiscal year. First quarter sales were $8.3 billion, up 9.4% compared to last year, and overall operating margin was 3.3%. Sales volume dropped 5.3 percent for the quarter, while net income dipped from $294 million in 2011 to $156 million in 2012.
"Our Q1 results demonstrate that we are competitive and that our multi-protein, multi-channel, multi-national business puts us in a position to deliver sustainable earnings over time," said President and CEO Donnie Smith. “Even with higher feed ingredient costs, our Chicken segment returned to profitability in the fiscal first quarter on improved pricing and execution. Prepared Foods had a strong performance, and the Pork segment continued to produce outstanding results. Our Beef segment is experiencing a rough patch as a result of challenging market fundamentals. Although we are still outperforming industry indexes, if current conditions continue, our Beef results will be pressured in our second quarter.”