Tyson reports operating income for first quarter 2012
Company expects poultry production to drop from 2011 numbers
Tyson Foods has reported its operating income for the first quarter of 2012, coming in at $278 million compared to $498 million during the same time in 2011, according to the company's latest statement.
Of that, $32 million, or 1.2 percent of sales, was from its chicken sector, $165 million (11.2 percent of sales) came from its pork sector and $31 million (0.9 percent of sales) was from its beef sector. Another $51 million, or 5.9 percent of sales, came from Tyson's prepared foods sector.
For fiscal 2012, Tyson said it expects poultry industry production will decrease 4 percent from fiscal 2011, which should further gradually improve market pricing conditions. Current futures prices indicate higher feed costs in fiscal 2012 compared to fiscal 2011. "We expect to offset the increased feed costs with pricing and mix improvements as well as operational efficiencies expected to result in additional savings of $125 million in fiscal 2012," said the company. "Our chicken segment returned to profitability in the first quarter of fiscal 2012 and we expect it to strengthen throughout the year."