Tyson had a record second quarter overcoming a harsh winter to post sales exceeding $9 billion. The company expects to achieve 6%-8% sales growth in value-added products, and believes that prepared foods offer the best opportunities for growth in the future. Sales volume of chicken grew because of higher demand, while sales volume of beef decreased because of a reduction in live cattle processing as a result of lower export sales, although sale price for beef increased because of tighter domestic supply. Pork sales volumes increased in the second quarter on improved domestic demand with average sale prices increasing due to mixed changes and lower total hog supplies. Prepared foods sales volume increased on improved demand and volume from the acquisition of three businesses. Operating income decreased because of higher input costs and investments made into growth platforms. International sales volumes increased as the company expands into China and Brazil. In 2014, the company expects overall protein production to decrease 1% from 2013 mainly due to forecasted hog supplies. Grain supplies are expected to increase resulting in lower input costs. To read the full report:
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