Tyson Foods saw its net income and net sales increase in the third quarter of fiscal year 2018.
The diversified protein company released its quarterly financial results on August 6. The quarter ended on June 30.
Net income for the quarter was $542 million, an increase from the $448 million recorded at the end of the third quarter of the 2017 fiscal year. Net sales, also on a year-over-year basis, rose from $9.85 billion to $10.05 billion.
“We continued to grow our business in Q3, even with the headwinds we faced related to oversupply and pricing,” Tom Hayes, president and CEO of Tyson Foods, stated. “In this challenging environment, we delivered a solid quarter overall, growing earnings, operating income and margins.”
Chicken segment performance
Sales volume for the Tyson Foods chicken segment decreased slightly for the third quarter, due to sluggish demand for certain chicken products, partially offset by incremental volume from business acquisitions, the company stated in a press release.
However, the average sales price increased due to sales mix changes and price increases associated with cost inflation.
The segment’s operating income decreased from $298 million to $196 million due to increased labor, freight and growout expenses, in addition to higher feed ingredient costs and derivative losses in the third quarter.
The adjusted operating income for the beef segment, meanwhile, more than doubled and the prepared foods segment saw its adjusted operating income rise substantially, while the adjusted operating income for the pork segment was essentially cut in half.
“Our diverse portfolio continues to be a key advantage for us,” Hayes said. “Our beef and prepared foods segments had a strong quarter, helping to balance the results in our chicken and pork segments, which faced stiff headwinds. We have a sound strategy and a solid foundation, which will continue to serve our business and shareholders well. We remain confident in our ability to create long-term value.”