Tyson Foods’ net income, sales jump in second quarter

Tyson Foods reported in increase in net income and sales for the second quarter of fiscal year 2019.

Roy Graber Headshot
(Tyson Foods)
(Tyson Foods)

Tyson Foods reported in increase in net income and sales for the second quarter of fiscal year 2019.

The company saw its net income rise to $426 million for the latest quarter, a jump from the $316 million for the second quarter of 2018. Its sales for the most recent quarter totaled $10.4 billion, up from about $9.8 billion from the same period one year ago.

Chicken segment results

Tyson’s Chicken segment’s sales rose to $3.4 billion, a rise from about $3 billion for the second period of 2018. The segment’s volume increased 26.2 percent on a year-over-year basis, but that growth was hindered by a 11 percent decline in average price when compared to the previous year’s second quarter.

That increase, the company said in a press release, is primarily due to business acquisitions such as Keystone Foods and Tecumseh Poultry, while the decrease in average sales price was mainly attributed to a sales mix primarily associated with the acquisition of a poultry rendering and blending business – American Proteins – during the fourth quarter of fiscal year 2018.

Despite the increase in sales, the Chicken segment’s operating income dropped from $231 million in the second quarter of 2018 to $141 million during the most recent quarter. Operating income decreased for the six months and second quarter of fiscal 2019 due to increased operating costs, in addition to higher feed ingredient costs and current market conditions. 

Other segments

While the chicken segment’s operating income declined for the quarter, its Beef, Pork and Prepared Foods segments all saw increases on a year-over year basis. Prepared Foods saw the biggest improvement more than doubling its operating income from $119 million to $245 million.

Beef’s operating income jumped from $92 million to $156 million, while Pork’s rose from $67 million to $100 million.

While the Prepared Foods segment saw a substantial jump in operating income, its sales declined on a year-over-year basis, largely due to the divestiture of non-protein businesses.

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