said it expects to roughly break even in the second quarter, a forecast that is down considerably from the poultry producer's previous guidance.
The company will record a charge in the quarter of 2 cents to 3 cents a share from a product recall and the divestiture of its North Caroline hog operation. Winter weather, which caused both transportation and energy difficulties, will reduce earnings another 3 cents or 4 cents a share.
Tyson, which is based in Springdale, Ark., originally offered a profit forecast of 6 cents to 10 cents a share for the second quarter. Seven analysts polled by
First Call/Thomson Financial
arrived at a consensus estimate of 9 cents a share, but the company now expects earnings to be "at or near break-even."
Tyson recently disclosed plans to acquire
, a pork and beef processor, but IBP's
accounting problems have stalled the deal.
Shares of Tyson lost 56 cents, or 4.2%, to $12.91 in recent
New York Stock Exchange