Chicken and beef boost Tyson’s Q4 results

Sales increased 7% year-on-year in Q4 2013 to a record $8.9bn, while operating income was up 18% to $416m and earnings per share increased 23% to $0.70. Over the entire fiscal 2013 year, sales hit a record $34.4 billion, up 4% year on year, while operating income rose 7% to $1.37bn and adjusted EPS from continuing operations increased 15% to $2.26 compared to $1.97 in 2012. Tyson said chicken sales volumes grew in fiscal 2013 as a result of increased domestic and international demand, while higher input costs were offset through improved pricing and mix. “Operating income was positively impacted by increased average sales price and volume, improved live performance and operational execution, as well as improved performance in our foreign-produced operations. These increases were partially offset by increased feed costs of approximately $30m and $470m for the fourth quarter and 12 months of fiscal 2013, respectively,” it said. Beef sales volumes also rose in the fourth quarter, with production boosted by good cattle supply and strong demand for beef, although volumes were down over the fiscal year “due to less outside trim and tallow purchases”, Tyson said. Pork sales decreased as the result of reduced exports, but operating income remained strong in fiscal 2013. Expectations for growth Commenting on the results, Donnie Smith, Tyson’s president and chief executive officer, said: “We had a great fourth quarter, and 2013 was the best year in company history in terms of record sales and earnings per share. “A year ago we outlined our expectations for growth. We said you should expect top-line sales to grow around 3-4% annually. In fiscal 2013, we grew sales by 4%.” He added that the results were achieved while the company bought back $550m in stock and paid more than $100m in dividends, as well as developing operations in China and building its prepared food business through acquisitions. “By overcoming many challenges, we grew adjusted earnings from continuing operations by 15% this year. Sales growth from value-added products was almost 6%, against an aggressive goal of 6-8% growth per year. And finally, we set a goal of growing sales from international production by 12-16% a year, and we beat that goal with 20% growth,” he said. Tyson predicted that spend on chicken, beef, pork and turkey would increase by around 1% in fiscal 2014. It predicted that chicken and pork production would also increase, boosted by lower feed costs, although added that cattle supplies were likely to come under pressure.

Chicken and beef boost Tyson’s Q4 results

US meat processor Tyson foods has reported a solid fourth-quarter performance, boosted by strong chicken and beef sales.

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