Tyson reports net income for second quarter 2012
Second-quarter numbers up, first-half numbers down compared to 2011
The net income for the first six months of fiscal 2012 is behind 2011 numbers, at $322 million versus $457 million. "As a result of continued focus on internal performance, improved domestic chicken market conditions and strong performance in our pork and prepared foods segments, our operating results remained strong in the second quarter of fiscal 2012," said Tyson. "Driven by reduced industry supplies, domestic chicken market conditions continued its improvement in the second quarter of fiscal 2012, which contributed to the chicken segment returning to its normalized operating margin range." The chicken segment reported an operating margin of 5 percent for the second quarter.
For fiscal 2012, Tyson expects industry production will decrease approximately 4 percent from fiscal 2011, which should allow for the continuation of improved 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 in its report. "Our chicken segment returned to its normalized operating margin range in the second quarter of fiscal 2012, and we expect results to remain strong for the remainder of the year."