USATyson Foods, a processor of chicken, beef and pork, posted a quarterly
profit that topped analysts’ estimates amid higher revenue at its chicken and
beef divisions.
Net income was $160 million, or 42
cents a share, compared with a net loss of $102 million, or 27 cents a share, a
year earlier. Sales in the period, which ended Jan. 2 and was the first quarter
of Tyson’s fiscal year, climbed 1.7 percent, to $6.64 billion.
Tyson said that sales volume
increased 7.2 percent at its beef division and that chicken sales were helped
by a 2.8 percent price increase. The company predicted prices for chicken would
improve during the fiscal year, helped by cold storage inventories.
“We’re developing momentum that I
believe will continue through the year and into 2011,” the chief executive,
Donald Smith, said in a statement.
Company revenue will be $27.5
billion to $28 billion this fiscal year, the chief financial officer, Dennis
Leatherby, said in a conference call with investors and analysts.
The income topped the 17 cents a
share expected by analysts, and stock in Tyson, which is based in Springdale, Ark.,
rose 66 cents, or 4.7 percent, to close at $14.65.