Donnie Smith, president and chief executive officer of Tyson Foods Inc., told investors at the BMO Capital Markets 2010 Agriculture, Protein & Fertilizer Conference that favorable market conditions for protein are expected to continue for the remainder of fiscal 2010 and into fiscal 2011.
"We've posted strong results in the first half of our fiscal year, and we expect the second half to be even better," Smith said. "The operating environment is good now, and we expect it to continue into next year."
Smith based his prediction on the improvements the company has recently made: it reduced its debt position; has improved its operations; and recently raised the normalized operating margin ranges for its beef and pork segments.
Although the chicken segment has underperformed in the past, Tyson expects it to be within its normalized operating margin range of 5-7% for the year.