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Tyson Foods Inc. of Springdale (NYSE: TSN) reported on Monday that net income was flat in its fiscal third quarter as sales of its chicken, pork and prepared food segments declined.
The meat giant reported a profit of $750 million, down from $749 million in the same quarter a year ago.
The company posted earnings per share of $2.07, up 1% from $2.05 a year ago. Earnings adjusted for one-time gains were $1.94 per share, down 28% from $2.70 in the third quarter of 2021.
The results exceeded Wall Street expectations. The average estimate from four analysts polled by Zacks Investment Research was for earnings of $1.91 per share.
Tyson posted revenue of $13.5 billion in the quarter, which also beat Wall Street forecasts. Three analysts polled by Zacks expected $13.31 billion.
Tyson expects annual revenue of between $52 billion and $54 billion.
Beef sales rose 1.3% in the third quarter on strong global demand, but were partially offset by labor and supply chain issues. The average selling price decreased slightly due to lower demand for premium reductions. Additionally, Tyson reported a gain of $55 million from the recovery of livestock inventory related to the embezzlement of company funds by a supplier.
Chicken sales fell 2.1% in the quarter, which the company attributed mainly to a fire at a production plant in the fourth quarter of fiscal 2021 and a reduction in meat purchases at the outside. The average selling price rose more than 20% from the same quarter in 2021, which the company attributed to the “effects of pricing initiatives in an inflationary cost environment.”
The company said pork sales fell 1.7% in the quarter due to lower global demand, while the average selling price fell nearly 4% due to reduced prices. exports and lower retail demand.
Tyson said prepared food sales fell 8.5% due to the impacts of higher prices, the uneven recovery in the restaurant industry, the divestiture of its pet treats business from company in the fourth quarter of fiscal 2021 and a challenging supply environment in the first half of fiscal 2022. Prepared food selling prices increased nearly 14% in the quarter, which Tyson primarily attributed at “the effects of revenue management in an inflationary cost environment. »
“We delivered strong results in the third quarter, with a focus on operational excellence and aggressive cost management,” Donnie King, president and CEO of Tyson Foods, said in a press release.
Tyson shares were down around 8% late Monday morning.
The company announced last month that he has an agreement to acquire stakes worth a total of around $70 million in two Saudi food companies. The company said the deal will help it meet growing demand for protein in the Middle East.
The Associated Press contributed to this report.