Tyson returns to profitability in Q4 but still falls a penny short of analyst estimates. The company also reduced FY 2008 guidance, blaming higher raw commodity costs such as grain.
Tyson Foods decreased its 2007 earnings outlook due to higher cost of ‘higher-than-expected’ live cattle and decline in beef revenue as the beef trade with South Korea declined. Further, the sales for chicken reduced after it had increased its price.
Shares of top U.S. meat producer Tyson Foods Inc. jumped more than 5 percent to their highest level since 1998 amid rumors in the options markets that the company could be a takeover target.
Tyson Fresh Meats Inc. recalled more than 40,000 pounds of ground beef shipped to Wal-Mart stores in 12 states after samples tested at a Sherman, Texas, plant showed signs of E. coli contamination. No illnesses had been reported.
Oil company ConocoPhillips and meat producer Tyson Foods Inc. plan to work together to produce biodiesel from animal fat. ConocoPhillips, the third-largest U.S. oil company, said it plans to spend about $100 million over a 3 year to 5 year period to prepare several refineries to process the fuel. Tyson said production is expected to start late in 2007 and ramp up through spring 2009. At full production, Tyson expects annual earnings of 4 cents to 16 cents a share from the project.
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