Tyson Foods 4Q profit rises, sees fiscal 2006 profit below Wall Street estimates

Monday, October 31st 2005, 9:55 am
By: News On 6

SPRINGDALE, Arkansas (AP) _ Tyson Foods Inc., the world's largest meat and poultry processor and marketer, on Monday reported its fiscal fourth-quarter profit rose by nearly 49 percent from results depressed by a charge last year. But the profit was below Wall Street estimates and it offered guidance for this year that was short of analysts' expectations.

Tyson earned $98 million (euro83.7 million), or 28 cents per share, for the three months ended Oct. 1 versus a year-earlier profit of $66 million, or 19 cents per share.

The latest quarter's results included a nonrecurring income tax net benefit of $15 million (euro12.8 million), and $8 million (euro6.8 million) in pretax losses it sustained from Hurricane Katrina. The items added 3 cents per share to its profit, Tyson said.

Sales fell 9 percent to $6.5 billion (euro5.5 billion) from $7.15 billion last year, mainly because of lower volume from one less week of sales this year, offset partially by increased sales prices and better product mix.

Wall Street had forecast earnings of 30 cents per share, the average estimate of 11 analysts surveyed by Thomson Financial, on sales of $7.03 billion.

The company's chicken sales fell 10 percent to $2.09 billion (euro1.78 billion) and pork sales declined 14 percent on lower volume, but operating profit in each segment grew 40 percent and 39 percent, respectively.

Tyson forecast 2006 earnings between 95 cents and $1.25 per share, versus analysts' consensus view of $1.33 per share. It also said it expects to record more costs from Hurricane Katrina in the first quarter.