Tyson Turn-Around Puts Analysts In A Spin
US - Tyson's second quarter recorded profits of 68 million dollars, defying the expectations of analyst surveyors Thompson financial by an extra eight cents per share.
1 May 2007
2 minute read
The turn-around comes exactly a year after it fell to its lowest point, recording a loss of 127 million dollars in the same quarter. Now, with improvements in all sectors and all sectors profitable again, it has risen back to its highest since the first quarter of 2005.
"I want to thank the Tyson team members for everything they've done to bring us back to this position," said Bond. "The turnaround has been gratifying for all of us, but we still have work to do to reach our potential."
You'd think it's potential had already been proven as the worlds single largest chicken, beef and pork producer, but John Tyson, president and chief executive isn't satisfied yet.
"The Company continues to strengthen and gain momentum across all core businesses by accelerating innovation and driving operational discipline. Some important milestones we reached include unveiling our new Discovery Center, our renewable energy strategic alliance and our progress." Confident words from a man who believes his company has strengthened sufficiently to meet a "$200 million Cost Management Initiative target."
Most suprisingly profits even came from the poultry industry, which in general has struggled with a catalogue of misfortunes and hardship tough enough to see off many of Tyson's closer competitors. The unexpected turnaround indicates that they have figured out how to adjust to the rising cost of feeding livestock, which has skyrocketed amid soaring corn prices.
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