(Bloomberg) -- Tyson Foods Inc (NYSE:TSN)., the top U.S. meat company by sales, reported better-than-expected earnings as surging meat prices helped to offset a decline in volumes with a tight labor market continuing to impede operations.
Sales volumes of beef, pork and chicken each dropped sharply during Tyson’s fiscal fourth quarter, with the decline partially tied to one fewer week in the quarter compared to 2020. Demand remained strong even as higher costs including labor and freight raised meat prices.
Meat producers including Springdale, Arkansas-based Tyson have struggled to find enough workers to staff facilities. Labor shortages mean consumers are expected to continue paying elevated prices. The results follow record earnings reported last week by rival JBS SA (OTC:JBSAY).
“We delivered a record performance in our beef segment and experienced share gains in our retail core business lines,” Chief Executive Officer Donnie King said Monday in a statement.
Key Takeaways
- Tyson said it’s implementing a productivity program that will allow it to save $1 billion by 2024.
- Beef volumes sank 15%, pork 18% and chicken 5.9% in Tyson’s fiscal fourth quarter.
- Tyson, one of the biggest companies to mandate Covid-19 vaccinations for employees, on Oct. 26 said 96% of its workers had gotten a shot.
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- Adjusted fourth-quarter earnings per share of $2.30 compared to an average analyst estimate of $2.16.
- Sales of $12.81 billion were up from estimates for $12.75 billion.
- Tyson shares, which have climbed 26% so far this year, rose 0.3% to $81.50 before the start of regular trading.
- Tyson will host a conference call with analysts at 9 a.m. New York time.
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