Tyson Foods announced fiscal 3rd-quarter profit jumped as higher average prices on chicken sales and shorter customer contracts helped boost the bottom line, reports AHN.
The protein giant posted Q3 earnings of $134 mln (35 cents a share), which is comfortably above the $9 mln (3 cents a share) earned in the same period a year ago.
Tyson did, however, report a drop in revenue to $6.6 bln, down 3% from $6.85 bln in 2008 as sales for pork and beef softened in the period due to 10% declines in average selling price for both items.
According to AHN, earnings topped analyst estimates for 22 cents a share, while revenue fell just shy of the $6.68 bln expected.
“Our earnings for the third quarter reflect a solid performance by all of our operating segments,” said Leland Tollett, interim president and CEO of Tyson Foods. “In the midst of a slow economy and a challenging operating environment, we stayed focused and worked as a team to produce results within historical normalised ranges for each segment.”
Tyson Foods reported an operating profit in all 4 of its segments. The company’s chicken unit posted the largest profit of $143 mln, while pork contributed the least at $28 mln.
Despite the strong earnings report, shares of Tyson have been pressured on Monday because the company said it anticipates a softening in chicken sales, its strongest unit, during the Q4.