NEW YORK: Tyson Foods, the No 1 US meat processor, beat analysts’ quarterly profit estimates yesterday due to strong demand for beef, but executives warned that trade disputes were threatening the company’s businesses.
China is importing less meat after Beijing imposed tariffs on American shipments as part of an escalating trade war with Washington. Mexico and Canada also implemented levies, leading to oversupply and, subsequently, lower prices for meat in the US market. Lower prices were also reducing demand for Tyson’s chicken, according to the company.
Operating income for the chicken business in the third quarter dropped to $189 million, from $294m a year earlier, according to the company.
Sales increased in Tyson’s beef business due to higher exports and increased supplies, according to the company. The unit had a record operating income of $318m in the quarter, up from $147m a year earlier, Tyson said.
Net income attributable to the company rose to $541m, or $1.47 per share, in the quarter ended June 30, from $447m, or $1.21 per share, a year earlier.
Analysts on average had expected earnings of $1.40 per share on revenue of $10.28 billion, according to Thomson Reuters I/B/E/S. Excluding certain items, the company earned $1.50 per share.
The Springdale, Arkansas-based company said sales rose two per cent to $10.05bn.