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Tyson Sees Sales Value Slip

by 5m Editor
4 August 2009, at 10:13am

US - US meat processing giant Tyson Foods saw sales slip slightly over the first nine months of the current financial year and in the third quarter.

In the quarter, sales fell from $6.849 billion to $6.662 billion and over the nine months, they fell from $19.661 in 2008 to $19.490 this year.

Over the nine months, the company made a net loss in income of $82 million from a profit in the previous year of $38 million but during the year, the company faced a $15 million charge for the closure of a plant and a $10 million pre-tax loss on the sale of Lakeside Farm Industries.

The company said that in the third quarter, all operating segments were profitable with margins in the normal ranges.

The Chicken sector has an operating income of $143 million, or 5.9 per cent of sales; the Beef sector had an operating income of $66 million, or 2.4 per cent of sales; the Pork sector had an operating income $28 million, or 3.3 per cent of sales and the Prepared Foods sector had an operating income $40 million, or 5.9 per cent of sales.

Total debt was down by $152 million from the second quarter.

"Our earnings for the third quarter reflect a solid performance by all of our operating segments," said Leland Tollett, interim president and chief executive officer 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.

"I am encouraged by our progress in improving operational efficiencies in the Chicken segment, although we still have work to do," Mr Tollett said. "Our Beef, Pork and Prepared Foods segments continue to perform well.

"We also have been disciplined in managing working capital and have reduced inventory by a substantial amount in the second and third quarters.

"Soft demand for protein is likely to make the fourth quarter more challenging than the third quarter, but I'm feeling much better about our position than I would be if we were sitting on a lot of inventory," Mr Tollett said.

"Overall, I am very pleased with the direction we're headed and with the attitude of our team members to get the job done."