Tyson Foods Inc. of Springdale on Monday reported mixed results for the second quarter of its fiscal year, with revenue rising slightly to $8.4 billion compared with $8.3 billion a year ago, while net income was down sharply.
The company reported earnings per share of 26 cents, down from 44 cents a share a year ago, falling short of the pre-release consensus estimate of 45 cents a share made by 11 industry analysts as compiled by FactSet Research Systems Inc.
Tyson said its second-quarter performance was boosted by higher average sales prices, but those gains were partially offset by increased feed costs of $165 million.
“Our second quarter typically is our most challenging, and this quarter was no exception,” Donnie Smith, Tyson’s president and chief executive officer, said in a news release. “However, our business is structured to withstand adverse conditions, and we worked through the issues while positioning ourselves for what we believe will be a strong performance in the second half of the year.”
Net income for the quarter was $95 million, down from $166 million a year ago.
Smith said on a conference call Monday after the markets opened that rainfall in the nation’s Corn Belt has delayed planting and that cooler temperatures have slowed the crop’s growth. He added, however, that he was “not particularly concerned that the late spring will hurt. I think we’ll be just fine,” he said.
“Our EPS [earnings per share] for the quarter wasn’t at the level we’d like, but on an adjusted basis, we’re about where we were at this point last year,” Smith said in the earnings release. “I’m still confident our results for 2013 will be better than 2012. The company reported that its adjusted net income - a tool used to help investors assess the company’s performance - attributable to Tyson was 36 cents per share.
By operating segment for the quarter, Tyson reported:
Pork had a 5.5 percent return on sales and $72 million in operating income. Average sales price per pound and volume both were down 2.2 percent from a year earlier. The company said it expects pork supplies to be flat but sufficient, and the company expects another strong year.
The prepared-foods segment had a 3.5 percent return on sales and $28 million in operating income. Volume was down 0.8 percent.
The company’s beef segment had an operating loss of $26 million, and volume was down 3.9 percent. Prices per pound rose 6.5 percent.
Also on Monday, Tyson saidthat at a meeting Thursday its board of directors approved a quarterly dividend of 5 cents per share on its Class A common stock and 45 cents a share on its Class B common stock, payable on Sept. 13 to stockholders of record as of Aug. 30.
The company said its netinterest expense for the quarter was $34 million, down 28 percent from a year ago. It repurchased 2.1 million shares during the period at a cost of $50 million.
Tyson’s stock closed Monday at $24.10 a share, down 83 cents, or 3.3 percent, in trading on the New York Stock Exchange. The stock has traded between $14.07 and $25.12 in the past year.
Business, Pages 23 on 05/07/2013