Meat products maker Tyson Foods Inc. (TSN: Quote) Friday said profit in the first quarter improved from the prior year, amid higher chicken sales. While earnings topped Wall Street estimates, revenues fell short of expectations.
Net income attributable to the company increased to $173 million from $156 million. Earnings per share grew to $0.48 from $0.42.
On average, 12 analysts polled by Thomson Reuters expected earnings per share of $0.42 for the quarter. Analysts' estimates typically exclude one-time items.
Sales climbed to $8.40 billion from $8.33 billion in the prior year. Analysts expected revenues of $8.60 billion. Gross profit improved to 6.4 percent from 5.9 percent.
Chicken sales climbed 7 percent to $2.96 billion while volume dropped slightly amid reduced open-market meat purchases.
Beef sales were $3.49 billion, more or less unchanged from last year. Volume dropped 10 percent due to a reduction in live cattle processed because of soft domestic demand for beef.
The pork business generated $1.36 billion in the quarter, down nearly 8 percent year over year. Volume slid 2.2 percent due to balancing of supply with customer demand.
Donnie Smith, CEO, said, "Fiscal 2013 is off to a good start. With earnings of $0.48 per share in the first quarter, we are on our way to producing earnings this year better than fiscal 2012. We knew we'd face headwinds, and that has certainly been the case; however, we're not simply holding our own. We're producing solid results while preparing for growth.''
For fiscal 2013, the company still expects sales to approximate $35 billion, mostly resulting from price increases related to expected decreases in domestic availability of protein and rising raw material costs. Analysts looks for revenues of $35.54 billion for the year.
TSN, which closed at $22.12 on Thursday, is adding 2.1 percent in pre-market activity.
by RTT Staff Writer
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