Tyson Foods Inc. has reported decreased earnings for its fiscal 2013 second quarter as income was lower across all business segments, including a $26 million loss in its beef division.
Chief executive officer and president Donnie Smith noted that quarter two typically is the company's most challenging, "and this quarter was no exception."
He said the chicken division focused on operational efficiencies, an improved mix of products and increased pricing to offset $165 million in additional feed costs.
He said the beef division suffered margin compression as consumers opted for more relative value in chicken, and the pork segment was adversely affected by the loss of some export markets and periods of supply and demand imbalance.
Continuing demand softness in the foodservice sector affected the prepared foods segment, Smith said.
Despite lower earnings for the quarter and six months, Smith said he remains confident that the company's results for fiscal 2013 "will be better" than they were in fiscal 2012.
For its quarter ended March 30, Tyson reported net earnings of $95 million, or 36 cents per share, on sales that were $8.419 billion, compared with $166 million, or 44 cents per share, on sales that were $8.268 billion in its second quarter in fiscal 2012.