Net income for Tyson Foods increased to $343 million during the third quarter of fiscal year 2015, an improvement of nearly 32 percent when compared to the third quarter of 2014.
The quarter was also highlighted by a four percent increase in sales, going from $9.7 billion to $10.07 billion.
The diversified meat, poultry and food company saw strong performances in its Chicken and Prepared Foods segments, reported Donnie Smith, president and CEO of Tyson Foods, while the Pork and Beef segments struggled.
Prepared Foods sales in terms of dollars surged 77.4 percent, while Chicken sales were up 2.9 percent. Sales for the Pork segment were down 4.8 percent in dollar terms and down 2.7 percent in terms of volume. Beef segment sales were down 3.9 percent in dollar amounts and down 2.5 percent in volume.
"The Prepared Foods and Chicken segments performed very well in the fiscal third quarter while managing numerous challenges," said Smith. "The strong results in these two segments demonstrate the benefits of our branded, value-added product portfolio and multi-channel, multi-protein business model by partially offsetting soft results in the Beef and Pork segments.”
"Our beef business suffered from export market disruptions that had an $84 million impact on third quarter results, and we continue to see very high cattle costs at a time when product values and export issues are making it difficult to realize expected revenue levels in this spread business. While we are pleased with the performance of our business overall, unless beef market conditions improve rapidly, we will not achieve our previous guidance of $3.30-$3.40 adjusted earnings per share. As a result, we are modifying fiscal 2015 guidance to $3.10-$3.20 adjusted EPS.”