Springdale, Ark. - Tyson Foods, Inc. announced operating results for the third quarter and nine months of fiscal year 1998 for the period ended June 27, 1998.
Record sales for the third quarter of fiscal 1998 were $1.95 billion compared to $1.59 billion last year, an increase of 22.8%. The increase in sales is mainly due to the acquisition of Hudson Foods on January 9, 1998, resulting in an overall increase of 23.5% in total volume. Total average sales prices decreased 0.6%. For a benchmark, the average Georgia Dock price decreased 2.3% from the same quarter last year.
Gross profits for the third quarter increased 15.1% to $308.4 million from last year's $268.0 million and gross margin decreased 100 basis points to 15.8% from last year's 16.8%. Earnings increased $1.4 million to $46.6 million ($.20 diluted earnings per share) for the third quarter of fiscal 1998 compared to $45.2 million ($.21 diluted earnings per share) from the same quarter last year.
Record sales for the nine months of fiscal 1998 were $5.35 billion compared to $4.69 billion last year, an increase of 13.9%. The increase in sales is mainly due to the acquisition of Hudson Foods, resulting in an overall 18.6% increase in total volume partially offset by a 4.0% decrease in average sales prices. The average Georgia Dock price decreased 8.4% from the same nine month period last year.
Gross profits for the nine months increased 7.6% to $837.9 million from last year's $778.6 million and gross margin decreased 90 basis points to 15.7% from last year's 16.6%. Earnings decreased $23.2 million to $114.8 ($.51 diluted earnings per share) for the nine months of fiscal 1998 compared to $138.0 million ($.63 diluted earnings per share) for the same nine month period last year.
Meat Industry Insights News Service
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