Oversupply of meat hurts Tyson's 2Q tally
May 2, 2006 9:53 AM, from staff and wire reports
Tyson Foods sustained a $127 million net loss for the second fiscal quarter ended April 1, 2006, versus net income of $76 million for the same period in 2005. Second quarter 2006 sales for the Springdale AR-based meat producer totaled $6.3 billion compared with $6.4 billion for the same period a year ago.
Sales for the first six months of fiscal 2006 were $12.7 billion compared with $12.8 billion for the same period in 2005. Net loss totaled $88 million in contrast to net income of $124 million for the same period a year earlier.
Tyson said it will continue to develop more prepared foods, add efficiency to its system, and expand in foreign markets.
An oversupply in Tyson's beef, chicken, and pork operations and charges for previously disclosed plant closings were cited as reasons for the loss.
“We said the second quarter would be very tough, and it was even tougher than we anticipated,” said John Tyson, chairman and chief executive officer.
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