ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Tyson slashes earning estimates, share prices fall across industry

by 5m Editor
21 April 2006, at 12:00am

CHINA - When Tyson sneezes, the rest of the industry catches a cold. Tyson Foods Inc, the largest US meat producer, sent shares of meat companies lower in early trading on Thursday (Apr 20) after it slashed estimates for quarterly and fiscal-year earnings due to worse than expected beef and chicken sales.

Tyson slashes earning estimates, share prices fall across industry - CHINA - When Tyson sneezes, the rest of the industry catches a cold. Tyson Foods Inc, the largest US meat producer, sent shares of meat companies lower in early trading on Thursday (Apr 20) after it slashed estimates for quarterly and fiscal-year earnings due to worse than expected beef and chicken sales. Take me to eFeedLink

The US meat industry has been reeling from oversupply and low sales lately. Beef supplies are accumulating over the continued delay in re-opening markets in Japan and South Korea while bird flu has inflicted massive damage to poultry export sales. The chicken industry could alleviate some of its problems by reducing production, said Bank of America analyst Todd Duvick, adding that lower output could ease supply in a few months.

Still, an air of general pessimism pervades Tyson. While the company expected tough and uncertain conditions, market conditions have been far more difficult than previously projected, Chief Executive John Tyson said in a statement. JPMorgan analyst Pablo Zuanic said in a research report that previous estimates had taken a swift recovery as a given, thus giving buoyancy to the share prices of the company. With Tyson stating the recovery would be slower now, there could be a significant impact on the company's share price.

Tyson's shares on Thursday fell 40 cents, or about 3 percent, to US$12.87 in morning New York Stock Exchange trade. Shares of Smithfield Foods Inc, the largest US pork producer also slipped, along with shares of poultry producers Pilgrim's Pride Corp, Gold Kist Inc and Sanderson Farms Inc.

Source: eFeedLink - 21st April 2006

Take me to eFeedLink

5m Editor