Tyson shares exceed to one-year high
Tyson Foods shares climbed to their highest level in more than a year on Monday as the number one U.S. meat processor said low prices for livestock feed will help boost results again next year. Profits at meat processors and producers such as Tyson have been bolstered by declining costs for feed and as consumers buy more beef and chicken.
The company’s feed costs fell 65 million USD in the quarter as net income rose by 3 million to 394 million USD. For fiscal 2017, feed costs dropped by 80 million USD after four years of bumper harvests lowered prices. Low-cost corn reduces costs for farmers who raise hogs and cattle, while poultry mainly eat soymeal made from soybeans. Feed costs should stay flat in 2018, Tyson Chief Executive Tom Hayes said, because this year’s corn and soybean harvests will again be at or near record levels.
Sales for Tyson's beef business rose 9.5% in the fiscal fourth quarter ended Sept. 30, while operating income more than doubled. Demand for chicken also boosted the company's results, with sales of the lean meat rising 8 percent.
Tyson forecast total sales of 41 billion USD for the year ending September 2018, ahead of analysts’ average expectation of 40.36 billion USD, according to Thomson Reuters I/B/E/S.