041167 Tyson 4Q Profit Slides on Higher Costs

Springdale, AR - Meat processor Tyson Foods Inc. posted a sharp drop in fourth- quarter profit, hurt by increased feed costs that offset higher average prices for chicken, beef and pork during the period.

Quarterly income was $66 million, or 19 cents per share, down from $147 million, or 42 cents, in the year-ago period. The company said its earnings were impacted by an 8-cent-per-share charge from writing down and impairing intangible assets.

Analysts polled by Thomson First Call expected earnings of 17 cents per share. Sales for the period gained 9% to $7.15 billion from $6.57 billion a year earlier, but Tyson said the impact of rising prices for grain used for animal feed eroded its gross margin, with the cost of sales rising 11% to $6.69 billion during the quarter.

For the year, Tyson earned $403 million, or $1.13 per share, on sales of $26.44 billion, missing analysts' estimates for a profit of $1.29 per share. The company had earnings of $337 million, or 96 cents per share, with sales of $24.55 billion in 2003.

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