GO
Loading...

UPDATE 1-Tyson Foods profit doubles due to higher beef, pork prices

(Adds details, analyst estimates, forecast, share movement)

May 5 (Reuters) - Tyson Foods Inc's profit more than doubled in the second quarter as it sold more chicken and increased prices for beef and pork, and raised its full-year sales forecast.

Chicken sales rose about 4 percent to $2.84 billion, even though the company reduced prices due to lower feed costs.

Pork sales rose about 14 percent to $1.49 billion as prices increased about 13 percent.

Beef sales rose 11 percent to $3.82 billion, helped by a 13 percent rise in prices but volumes slipped 1.8 percent.

Tyson said it expected sales of about $37 billion for fiscal 2014, above the average analyst estimates of $35.94 billion, according to Thomson Reuters I/B/E/S.

The company, however, warned that overall domestic protein production for the year ending September would decrease about 1 percent, mostly due to lower hog supplies.

U.S. meat producers last year struggled as rising feed costs crimped margins and forced them to raise prices.

Tyson also reaffirmed that grain supplies would increase in 2014, bringing feed costs down.

Net income attributable to Tyson rose to $213 million, or 60 cents per share, in the quarter ended March 29 from $95 million, or 26 cents per share, a year earlier.

Revenue rose 7.8 percent to $9.03 billion.

Analysts on average had expected the company to earn 63 cents per share on revenue of $8.84 billion, according to Thomson Reuters I/B/E/S.

Tyson's shares have risen over 73 percent in the year up to Friday closing of $42.65 on the New York Stock Exchange. They rose about 1 percent in premarket trading on Monday.

(Reporting by Devika Krishna Kumar in Bangalore and Lisa Baertlein in Los Angeles; Editing by Kirti Pandey and Don Sebastian)

Symbol
Price
 
Change
%Change
TSN
---