Tyson Foods Posts $57 Million Net

SPRINGDALE Jan 26/04 - SNS -- Tyson Foods, Inc. reported a U.S. $57 net income on first quarter sales of $6.51 billion, up from $39 on $5.8 billion in sales during the same quarter last year.

For the quarter ended December 27, the meat and poultry processor said sales increases in its beef segment were hurt a $61 million charge related to BSE "as well as higher live cattle prices, thus resulting in decreased operating income," Tyson Foods said.

Beef segment first quarter sales increased $420 million or 15.5% from the same period last year, with a 31.5% increase in average sales prices and a 12.2% decrease in volume. Case-ready beef sales were $267 million and increased 33.8%, domestic fresh meat beef sales increased 15.8% and international beef sales increased 6.8%. Beef segment operating income decreased $76 million.

The beef segment is primarily involved in the processing of live fed cattle and fabrication of dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. It also involves deriving value from allied products such as hides and variety meats for sale to further processors and others. The Beef segment markets its products to food retailers, distributors, wholesalers, restaurants and hotel chains and other food processors in domestic and international markets. Allied products are also marketed to manufacturers of pharmaceuticals and technical products.

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