Tyson Foods see sales rise

Third quarter sales were $7.4bn while operating incomes for beef and pork were above historic highs.

Chicken operating income was $186m, beef operating income was $176m and pork operating income reached $125m.

President and CEO Donnie Smith said: “This was a fantastic quarter for Tyson Foods, with record earnings, sales and operating margin. With more than $600m in operating cash flow, we were able to pay down debt by $400m while continuing to invest in our business, bringing our debt to its lowest level since 2001.

“The beef and pork segments posted phenomenal results with record return on sales. Chicken continued to improve and performed within its normalized range. Prepared Foods struggled with rapidly rising input costs, but still managed a decent return.

“Looking ahead, our operational improvements and lower interest expense will help us finish 2010 in a great position and give us a strong start to 2011.”

Mainly known for its poultry products, Tyson predicts chicken production to increase while domestic availability will depend on export volumes. Current US crop conditions are favourable, the company added however, because of volatility in the world grain markets, grain costs could be higher in the next fiscal year compared to 2010.

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