Tyson: Chicken sales could yield higher profits
Tyson Foods Inc.'s third-quarter results, to be announced August 3, are expected to show profits higher than the same period last year
Measures taken by the company, including cutting production, coupled with a rise in chicken prices during the third quarter, and a fall in feed prices, particularly corn, is expected to have brought in considerable profits in the third quarter.
Tyson is hopeful of having recovered from the losses it suffered from its chicken unit last year. The unit had been reeling from high feed costs and weak demand.
The firm’s beef unit, too, is expected to have performed better than last year when the company incurred losses due to cattle hedging and forward beef sales. Earnings from pork sale, however, are expected to decline owing to reduced demands triggered by the outbreak of H1N1 flu.
Estimates by Wall Street analysts show the company may report earnings of about $74 million for the quarter that ended June 27, compared with $9 million a year earlier, according to Reuters estimates.z