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Tyson Foods: 3Q and nine months results

3rd quarter 2009 Net EPS was $0.35 as compared to $0.03 last year. Although, Leland Tollett, interim president and chief executive officer of Tyson Foods stated that the fourth quarter will be more challenging.

All operating segments were profitable with margins in the normalised ranges:
- Pork operating income $28 million, or 3.3% of sales
 - Chicken operating income $143 million, or 5.9% of sales
- Beef operating income $66 million, or 2.4% of sale
- Prepared Foods operating income $40 million, or 5.9% of sal
- Total debt, net of cash and restricted cash, was down $152 million from the 2nd quarter
"Our earnings for the third quarter reflect a solid performance by all of our operating segments," said Tollett. "In the midst of a slow economy and a challenging operating environment, we stayed focused and worked as a team to produce results within historical normalized ranges for each segment.
Beef and pork segments perform well
"I am encouraged by our progress in improving operational efficiencies in the Chicken segment, although we still have work to do," Tollett said. "Our Beef, Pork and Prepared Foods segments continue to perform well. We also have been disciplined in managing working capital and have reduced inventory by a substantial amount in the second and third quarters.
"Soft demand for protein is likely to make the fourth quarter more challenging than the third quarter, but I'm feeling much better about our position than I would be if we were sitting on a lot of inventory," Tollett said. "Overall, I am very pleased with the direction we're headed and with the attitude of our team members to get the job done."
- (12.6% of Net Sales - 3rd Quarter 2009)
- (13.1% of Net Sales - Nine Months 2009)
Pork segment sales were $839 million and $2.6 billion, respectively, in the third quarter and nine months of fiscal 2009. Operating income was $28 million and $112 million, respectively, in the third quarter and nine months of fiscal 2009. Operating results as compared to the same periods in fiscal 2008 were impacted positively by lower average live prices, offset in the third quarter by lower average sales prices. Operating results were impacted in the third quarter and nine months of fiscal 2009 by an improvement of $2 million and a decline of $35 million, respectively, from our commodity risk management activities related to forward futures contracts for live hogs as compared to the same periods of fiscal 2008. These amounts exclude the impact from related physical sale and purchase transactions, which impact current and future period operating results.

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