Tyson: profit slide,
pork business doing well
Pig Progress
30 Jul 2008
The company warned that rising grain costs could lead to
more losses in its chicken unit.
The chicken unit suffered from a $44 million loss in the
fiscal third quarter, compared to a $95 million profit in that same period in
2007, as prices for corn and soybeans rose rapidly after flooding damaged crops
and delayed plantings in the United States.
According to Tyson, the company paid $140 million more for
grain during the quarter to feed its poultry compared to last year. In
addition, it is expected that grain costs will cost up to $550 million this
fiscal year.
Pork business
The Tyson pork business wasn't hit as hard, since Tyson buys
swine for its beef and pork operations, contrary to its poultry business –
which are raised by the company and consequently have to be fed.
Operating income for Tyson’s Pork business was $54 million
compared to $37 million during the third quarter of fiscal 2007. Sales for the
segment during the quarter were $926 million compared with $857 million during
the previous year.
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