Tyson Foods Inc. (TSN:US), the largest U.S. meat processor, said domestic protein production will fall by about 1 percent in its current fiscal year as drought conditions cut grain supplies, leading to higher feed costs.
Cattle supplies may decline by 2 percent to 3 percent in the year through September, Springdale, Arkansas-based Tyson said today in its first-quarter earnings statement. While government data shows chicken output will be little changed, Tyson will pay about $600 million more for chicken feed, it said. It predicted hog supplies also will be little changed.
Tyson forecast full-year sales of about $35 billion, compared with the $34.7 billion average of 13 analysts’ estimates compiled by Bloomberg.
Net income rose to $173 million, or 48 cents a share, in the quarter ended Dec. 29, from $156 million, or 42 cents, a year earlier. The average of 13 estimates was for 42 cents a share.
Sales climbed 0.9 percent to $8.4 billion, trailing the $8.61 average of 12 estimates.
(Tyson scheduled a conference call at 9 a.m. New York time, which can be accessed at http://ir.tyson.com or by dialing +1-888-455-8283.)
To contact the reporters on this story: Whitney McFerron in London at email@example.com; Simon Casey in New York at firstname.lastname@example.org
To contact the editors responsible for this story: Claudia Carpenter at email@example.com; Simon Casey at firstname.lastname@example.org