The Washington Post
Tyson: Chicken, beef sales boost returns
Meat demand is still going strong despite soaring inflation, according to second-quarter results from Tyson Foods.
The biggest U.S. meat company by sales said a pickup in beef and chicken volumes boosted returns, and it raised its full-year revenue outlook to a range of $52 billion to
$54 billion, from $49 billion to $51 billion previously.
“Although we continue to see inflationary pressures across the supply chain, we are working to drive costs down by continuing to increase our efficiency, productivity and bringing more capacity on line,” chief executive Donnie King said in a statement Monday.
The top U.S. chicken producer and owner of Hillshire Farms and Ball Park hot dogs has been raising prices to offset a tight labor market and soaring costs. Chicken breasts were fetching record prices at supermarkets.
Tyson pointed to higher prices for cattle, hogs, animal feed, freight and labor. Beef prices were up 24 percent in the second quarter, while chicken was up 14 percent and pork 11 percent higher. With only small expansion in total U.S. beef supplies this year, Tyson expects “another strong year,” while its chicken segment is expected to have a better second half of the year, the company said in a release.
Adjusted earnings in the second quarter of $2.29 per share topped analyst estimates of $1.90. Sales of $13.12 billion compared with estimates of $12.8 billion.
Tyson, based in Springdale, Ark., has also been under pressure by politicians in Washington for elevated meat prices, with executives from the four biggest U.S. beef companies denying a price conspiracy.