The Tyson Foods chicken segment set an earnings record in the third quarter of 2013, helping the company more than triple its net earnings from the third quarter of 2012. Tyson Foods released its quarterly earnings report on August 5.
The Tyson Foods chicken segment recorded an all-time high of $220 million in earnings for the quarter, a substantial jump from the $159 million recorded during the third quarter of 2012. Tyson Foods' sales volume grew as a stronger demand for chicken products prompted increased domestic and international production. An increase in average sales price in the third quarter was largely due to mix changes and price increases associated with higher feed costs. Since many of Tyson's sales contracts are formula based and shorter term in nature, Tyson Foods was able to offset rising input costs through improved pricing.
Tyson Foods also reported record sales company-wide at $8.7 billion, as Tyson enjoyed an increase in sales for chicken, beef and prepared foods.
The increase helped Tyson Foods' net income for the third quarter reach $249 million. That figure is up sharply from the $76 million in net income reported during the third quarter of 2012. Tyson Foods also reported an 11 percent increase in revenues, climbing to $8.73 billion.
Tyson's strong third quarter is a significant contrast to its second quarter, when its net income of $95 million dropped 42 percent from where it was during the second quarter of 2012.
Donnie Smith, president and CEO of Tyson Foods, said he is encouraged by the third-quarter results, and expects similar success in upcoming quarters. "We expect the fourth quarter to look pretty close to the third quarter, and we expect that performance to continue on average through 2014," said Smith. "I like where we are, and I like the momentum we have. I'm confident we'll take that momentum into the next year."
Tyson Foods is projecting feed costs to drop by about $500 million in fiscal year 2014. The company anticipates some price adjustments as input costs fluctuate.