US meat producer Tyson Foods Inc reported a lower quarterly profit due to higher feed costs for its chickens, while strong pork exports helped results beat estimates. Tyson shares were up 2 percent in early trading, while the broader market was down 2.2 percent.
The company, which produces beef, pork and chicken, now predicts its chicken unit, the nation's largest, will lose money in the current quarter. Springdale, Arkansas-based Tyson has been unable to raise meat prices fast enough to offset higher costs due to large supplies of chickens in the markets.
Tyson's chicken unit, like its competitors, also has been hurt by weak chicken sales. Producers have been cutting production, but Tyson said that should not affect supplies until late in the current quarter. The largest US meat processor earned $196 million, or 51 cents per share, for the third quarter ended on July 2, compared with $248 million, or 65 cents a share, a year earlier.
Excluding an unusual reduction in income tax expense, the results were 46 cents per share. Wall Street, on average, forecast 40 cents, according to Thomson Reuters I/B/E/S. Revenue rose to $8.25 billion from $7.44 billion. Tyson shares were up 2 percent to $16.65 at the New York Stock Exchange.