Earnings: Tyson |
CHICAGO (Reuters) - Tyson Foods Inc. (TSN), the nation's top meat producer, Monday posted a loss for its fiscal second quarter due to an abundance of meat, but it said the impact of the meat supply should diminish later in the year.
The Springdale, Arkansas, based Tyson reported second quarter loss of $127 million, or 37 cents per share, compared with earnings of $76 million, or 21 cents, a year ago.
The results beat by a penny the company's forecast of a loss of 38 cents a share, which it made two weeks ago.
The results included charges of $59 million, or 11 cents per share, for a plant closings. Excluding the charges, the loss was 26 cents per share.
Wall Street analysts on average expected a loss of 27 cents, according to Reuters Estimates.
Revenue for the period ended April 1 fell 1.8 percent to $6.25 billion, compared with $6.36 billion a year ago.
Tyson and other meat companies have warned recently that an abundance of meat has hurt earnings. The meat glut has been blamed in part on bird flu overseas hurting exports of U.S. chicken and export bans on U.S. beef lasting longer than anticipated.
"This quarter's results reflect the depressed markets and the oversupply of all proteins. The beef segment suffered from low capacity utilization and declining boxed beef prices. The negative effect of high live cattle prices and lower sales prices was made worse by interruptions in export markets," Chief Executive John Tyson said in a statement.
The large meat supply, plus higher operating costs, also affected the pork segment, the company said.
"The impact of the oversupply of protein is expected to diminish in the second half of the year. We expect the third and fourth quarters to be better as demand improves, but they still will be difficult," he said.