Tyson also had record sales of $8.4 billion in the fourth quarter, up 12.9 per cent compared to last year with an overall operating margin was two per cent in the quarter.

However, net income for the quarter fell to $95 million compared to $208 million for the fourth quarter of 2010.

The chicken sector showed an operating loss of $82 million, while the beef sector has an operating income of $118 million, or 3.4 per cent of sales.

The pork sector had an operating income $113 million, or 7.9 per cent of sales and prepared foods had an operating income $28 million, or 3.4 per cent of sales.

"In fiscal 2011, we produced record sales and our second best EPS in company history despite record input costs, which included $675 million in additional feed and ingredient costs in our Chicken segment," said Donnie Smith, Tyson's president and chief executive officer.

"This is a testament to our quality, service and innovation and our focus on business fundamentals and operational efficiencies across all segments of our business.

"We will continue to build on the progress we've made in recent years and expect 2012 to be another strong year," Mr Smith said. "Midway into our first fiscal quarter, all segments are profitable."

Tyson said that USDA data indicates overall domestic protein (chicken, beef, pork and turkey) production is expected to decrease in fiscal 2012.

"Because exports are likely to remain strong, we forecast total domestic availability of protein to be down two to three per cent compared to fiscal 2011, which should continue to support improved pricing," Tyson said.

For fiscal 2012 in the chicken sector, Tyson expects industry production to decrease approximately four from fiscal 2011, which should gradually improve market pricing conditions.

Current futures prices indicate higher grain costs in fiscal 2012 compared to fiscal 2011.

"We expect to offset the increased grain costs with operational, pricing and mix improvements. Our Chicken segment is currently profitable and we expect it to strengthen throughout the year," the company said.

In beef, Tyson expects to see a gradual reduction in fed cattle supplies of one to two per cent in fiscal 2012 as well as exports to remain strong as compared to fiscal 2011.

"Despite reduced domestic availability, we expect adequate supplies in the regions we operate our plants. Although current weak industry fundamentals are challenging our Beef business, we expect it to be profitable in the first quarter. We anticipate the fundamentals will strengthen throughout the year and our Beef segment will be in our normalized range for fiscal 2012," the company said.

The company expects hog supplies in fiscal 2012 to be comparable to fiscal 2011 and to be adequate in the regions in which it operates.

It also expects pork exports to remain strong in fiscal 2012.

"Based on these factors, we expect strong fundamentals in our Pork business to continue in fiscal 2012," it said.

Operational improvements and increased pricing to offset an anticipated increase in raw material costs are expected in the prepared foods sector.

"Because many of our sales contracts are formula based or shorter-term in nature, we are typically able to offset rising input costs through increased pricing. However, there is a lag time for price increases to take effect. We expect improved Prepared Foods profitability for fiscal 2012 primarily due to improvements in our lunchmeats business," the company statement said.

"We expect 2012 sales to exceed $34 billion mostly resulting from price increases related to decreases in domestic availability of protein and rising raw material costs.

"Our preliminary capital expenditures plan for fiscal 2012 is approximately $800-$850 million. We will continue to make significant investments in our production facilities for high return operational efficiencies, other profit improvement projects and development of our foreign operations.

"We expect fiscal 2012 net interest expense will be approximately $185 million, down $46 million compared to fiscal 2011.

"We do not have any significant maturities of debt coming due over the next two fiscal years and will continue to use our available cash to repurchase notes when available at attractive rates. We plan to maintain total liquidity in excess of $1.2 billion.

"We expect to continue repurchasing shares under our previously announced share repurchase plan. In fiscal 2011, we repurchased 9.7 million shares for approximately $170 million. As of 1 October 2011, 12.8 million shares remain authorised for repurchases. The timing and extent to which we repurchase shares will depend upon, among other things, market conditions, liquidity targets, our debt obligations and regulatory requirements."