Tyson Foods (TSN) - Get Report said third-quarter earnings fell from a year ago and were hurt partly by costs related to poultry plant closings and a legal settlement involving the company's live swine operations.
The Springdale, Ark., processor of chicken, beef and pork earned $131 million, or 36 cents a share, for the third quarter ended July 2. Last year, the company had a profit of $161 million, or 45 cents a share.
Third-quarter sales were $6.7 billion, up from $6.6 billion for the same period last year. The special costs combined to reduce earnings by 8 cents a share.
Tyson said while the chicken segment performed well, and beef and prepared foods improved compared with the first half of the year, results from the company's pork operations were disappointing.
"We continued to generate strong cash flow, which enabled us to achieve our debt to capital goal one quarter earlier than expected," the company said in a press release. "Our value-added product mix continues to grow and we expect it to reach 40% by the end of our fiscal year. We made progress on our effort to improve our operating efficiencies. However, we also expect the fourth quarter to be more challenging."
For the full fiscal year, Tyson expects earnings of 95 cents to $1.05 a share, when calculated according to generally accepted accounting principles.