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Tyson Foods Q4 earnings increased 91%

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Tyson FoodsTyson Foods reported fourth quarter and fiscal year 2012 results and they are great: Q4 earnings rose 91 percent. The profit was $185 million, 51 cents a share, up from $97 million or 26 cents a share a year earlier.


Tyson Foods' revenue were slightly lower (0.4 percent), $8.37 billion, and the gross margin rose to 6.8% from 4.7%. The company's chicken business posted profit of $116 million, while a year-earlier the loss was $82 million. The beef segment sales decreased 2.4% with sales volume down 13 percent, which means that segment operating earnings decline 0.9 percent. The pork business sales decreased 7.8 percent. The liquidity totaled $2.0 billion at September 29, 2012, and the company's board declares $0.10 special dividend and a 25 percent increase on regular dividend.

Donnie Smith"While fiscal 2012 wasn't a record EPS year, I think it was our best year - certainly our best effort to date. Our team members didn't make excuses; they made a difference, and they made money. This allowed us to buy back stock throughout the year, including $50 million in the fourth quarter, and to reinvest in our business at a record level while strengthening our balance sheet.

"Our strong balance sheet, liquidity position and a desire to return cash to shareholders led the Board of Directors to declare a special dividend and to increase the regular dividend by 25%. The Board's action is reflective of our increased profitability and the investments we've made in the company," said Donnie Smith, Tyson's president and chief executive officer.

The company expect that chicken production will be down slightly in fiscal 2013, grain costs is expected to be higher, $600 million. In the beeg segment the company expect a reduction of industry fed cattle supplies of 2-3% in fiscal 2013 as compared to fiscal 2012, while in the pork segment it expects industry hog supplies in fiscal 2013 to be flat compared to fiscal 2012 and pork exports to remain strong. In the prepared food segment Tyson Foods expect operational improvements and increased pricing to offset increased raw material costs. The fiscal 2013 sales are expected to increase to approximately $35 billion.

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