* Full-year profit forecast more upbeat
* Quarterly earnings rise almost 11 pct
* Average beef price per pound sold increased almost 12 pct
* Shares climb 3 pct
By Lisa Baertlein
Feb 1 Tyson Foods Inc, the largest U.S.
meat company, raised its full-year revenue forecast above
analysts' average estimate as strong beef and chicken prices
help offset grain costs pushed higher by last summer's historic
Tyson shares climbed 3 percent on Friday after the company
also reported better-than-expected earnings for its fiscal first
The average price per pound for beef sold during the
quarter, ended Dec. 29, was up 11.7 percent from a year earlier,
while chicken was up 8.2 percent. Pork fell 5.5 percent.
Volume for all three meats fell during the quarter. Beef had
the steepest drop at 10 percent, while pork was down 5.5 percent
and chicken was off 1.1 percent.
Springdale, Arkansas-based Tyson forecast a 1 percent
decline in overall domestic protein production, including
chicken, beef, pork and turkey, for its full fiscal year.
The worst drought in more than 50 years in the U.S. Midwest
has pushed up prices for feed corn and led to the smallest
cattle supply in more than 60 years.
Cargill Inc, one of the nation's largest beef
processors, in January said it would close its Plainview, Texas,
beef plant as cattle remains in short supply.
"We are on our way to producing earnings this year better
than fiscal 2012," Tyson Chief Executive Donnie Smith said on
That was more bullish than Tyson's previous guidance for
earnings "similar" to those of the past couple years, JPMorgan
analyst Ken Goldman said in a client note.
Tyson forecast full-year revenue of $35 billion, in line
with analysts' average estimate $34.65 billion, according to
Thomson Reuters I/B/E/S.
The company's fiscal first-quarter profit rose almost 11
percent to $173 million, or 48 cents per share. Analysts had
expected 42 cents per share.
Sales rose to $8.40 billion from $8.33 billion a year
earlier, missing analysts' view of $8.60 billion.
Tyson shares were up 67 cents to $22.79 in midday trade on
the New York Stock Exchange.