This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tyson Foods Management Discusses Q3 2012 Results - Earnings Call Transcript

The Pork segment came in just below its range for the first time in 10 quarters, with a 5.1% return on sales. Beef was just under its range, with a 2% return. Considering the challenges Beef and Pork faced in the third quarter, I'm pleased they were able to produce as well as they did.

And due to those challenges, along with softer demand and economic conditions, earnings for the year will come in lower than we'd previously projected. But I'll hurry on to say that 2012 will still be a strong year and fourth quarter earnings should be within the range of results reported in the first 3 quarters.

That's why we have this strategy in the business model we have: to manage through volatility. We have a few businesses that are having record years, and all of our businesses have plans in place to deal with the headwinds that we know are coming.

Looking into 2013, we believe it's prudent to enter the year with plans to pull back some on our CapEx and be a little conservative with our cash in order to keep a good supply of dry powder. That's not to say we won't buy back stock or we won't make an opportunistic acquisition. We just want to be prudent in how we handle our cash. We worked hard to get our balance sheet back in order and to get back to investment-grade ratings, and we don't want to jeopardize that.

Our pledge to grow prepared foods, value-added poultry and international are the best hedge against volatility. Providing value and getting paid for the value we create for our customers by being their go-to supplier is the key to stability and long-term growth.

Now moving on to the macro environment. After 4 months of moderate decline, consumer confidence was up in July, according to the Conference Board Consumer Research Center. Unemployment, however, was virtually unchanged, which weighs on the pace of economic recovery.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.31%
FB $102.01 0.10%
GOOG $682.40 -0.10%
TSLA $151.04 0.38%
YHOO $27.04 1.05%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs