Tyson Monday reported net income of $161 million, or 45 cents a share, for the three-month period ended June 26, compared with $79 million, or 23 cents a share, a year earlier. Sales grew 4.8% to $6.63 billion from $6.33 billion.

Year-earlier results included a pretax gain of $42 million, or eight cents a share, related to antitrust litigation against vitamin manufacturers. That was partially offset by costs of $19 million, or three cents a share, for the closing of its Berlin, Md., poultry operation and an impairment charge of $10 million, or two cents a share, for its live swine operation.

Higher average selling prices lifted sales at Tyson's chicken and pork segments. Sales rose 13% to $2.12 billion at the chicken unit, despite import restrictions by various countries because of the avian influenza outbreaks in the U.S. At the pork unit, sales surged 31% to $828 million.

Import restrictions hurt results at the company's beef division, which saw its sales decline 5.5% to $2.97 billion. International beef sales plunged 44%, U.S. fresh meat sales rose 1.4%, and case-ready beef sales jumped 13%. Import restrictions were placed on U.S. beef after mad-cow disease was found in a U.S. cow late last year.

For fiscal 2004, Tyson said it now expects earnings between $1.20 and $1.30 a share, compared with a previously raised earnings forecast of $1.05 to $1.25 a share. The company had fiscal-2003 net income of 96 cents a share, including items.

Source: eFeedLink - 27th July 2004