SPRINGDALE, Ark. -- Tyson Foods Inc. today reported its second-quarter results, with the following highlights:

  • Loss from continuing operations posted at $208 million, vs. income of $44 million second quarter last year.
  • 2nd quarter 2009 Net EPS was $(0.28) as compared to $(0.02) last year
  • Income tax expense includes $62 million, or $(0.17) per diluted share, from changing the method of recognizing interim income taxes
  • Chicken operating loss was $46 million, an improvement of $240 million versus first quarter 2009
  • Pork operating margin was $29 million, or 3.4%; Beef operating margin was $28 million, or 1.2%
  • Prepared Foods operating margin was $19 million, or 2.8%; excluding the impact of plant closing charges of $15 million, operating margin was $34 million, or 5.0%
  • Ended quarter with over $1.1 billion of cash at the end of the quarter, including restricted cash.

  • "Our loss of $0.24 per share from continuing operations in the second quarter includes $0.17 from a change in the method we used to recognize interim income taxes and $0.02 from a one-time charge for a prepared foods plant closure," said Leland Tollett, interim president and CEO of Tyson Foods. "Our Chicken segment has been profitable since the end of February, and I am pleased with the consistent progress we are making. We have improved our operational efficiencies, our product mix, and we are benefiting from lower grain costs and more favorable chicken prices. Our Beef, Pork and Prepared Foods segments generated financial returns at or near normalized ranges in the second quarter, excluding one-time charges in Prepared Foods. Our tax rate for the remainder of the fiscal year should be closer to normal, and we believe the operational recovery we are experiencing will be reflected in our results for the third and fourth quarters.

    "It is too soon to predict the impact of the H1N1 outbreak. At this point, none of our pork plants are impacted by export bans. Our multi-protein, multi-sales channel business model puts us in a good position should consumers change which proteins they buy or where they buy them. Protein demand usually picks up as we move into the summer grilling season, and we are cautiously optimistic despite current conditions."

    SOURCE: Tyson Foods.