Tyson Foods Inc. (TSN) reported results for the first quarter of fiscal 2010 with earnings of 42 cents per share. Earnings were well above the Zacks Consensus Estimate of 18 cents, and were up compared to a net loss of 27 cents per share in the prior-year quarter.
Revenue for the quarter increased marginally by 1.7% year-over-year to $6.6 billion. Higher revenues in Tyson’s Chicken and Beef divisions were offset by revenue declines in the Pork and Prepared Food segments.
Sales in the Chicken segment came in 8.6% higher than the prior-year quarter, reflecting strong volumes and higher average sales prices. The segment gained from its recent acquisitions and inventory reduction efforts.
Tyson’s Beef division witnessed sales growth of 1% during the quarter. Lower average selling prices were more than offset by higher volumes in this business. Pork and Prepared Foods segments reported sales declines of 7% and 4% respectively, as volume gains in these segments could not fully offset the impact of lower average sales prices.
Total debt as on January 2, 2010 was $1.9 billion, which was down $400 million compared to the end of fiscal 2009. At the end of the quarter, the company had cash and cash equivalents of $1.3 billion.
Tyson expects fiscal 2010 to be a better year than fiscal 2009, helped by strong operating performance at its Beef, Pork and Prepared Foods divisions. Also, the company is making operational improvements to maximize margins at its Chicken division.
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