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UPDATE 1-Tyson posts quarterly profit, raises outlook
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CHICAGO, July 30 (Reuters) - Meat company Tyson Foods Inc. (TSN.N) on Monday reported a higher-than-expected quarterly profit and raised its earning estimate for the fiscal year.
For the third quarter ended on June 30, Tyson earned $111 million, or 31 cents per share, compared with a year-earlier loss of $52 million, or 15 cents per share.
The results topped analysts' estimates, which averaged 25 cents a share, according to Reuters Estimates.
Also on Monday, Tyson forecast fiscal-year earnings at 82 cents to 92 cents a share, up from its outlook in April of 65 cents to 90 cents.
Analysts on average expected 85 cents, according to Reuters Estimates.
Sales for the quarter rose to $6.96 billion from $6.38 billion.
"Sales dollars, operating income, and operating margins are greatly improved in all four segments over the third quarter of 2006 as well as the second quarter of 2007," Chief Executive Richard Bond said in a statement.
Sales volumes were down primarily due to planned production cuts and higher selling prices, Tyson aid.
The Springdale, Arkansas-based company continued to benefit from a $200 million cost-cutting program launched last year, when it was losing money.
Tyson also cited higher selling prices for chicken, which offset higher feed costs. The company raises the chickens it processes, but buys the cattle and hogs that it processes into beef and pork. The U.S. Department of Agriculture in late June put the average wholesale price for whole chickens at 80.60 cents per pound, up from a year-earlier average of 64.27 cents.
(Reporting by Bob Burgdorfer)
((Editing by Lisa Von Ahn; Reuters messaging: bob.burgdorfer.reuters.com@reuters.net; 312-408-8723; bob.burgdorfer@reuters.com))
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