Tyson Foods Posts Loss of $52 Million

Tyson Foods Inc. on Monday posted a $52-million loss in its fiscal third quarter and a 5% dip in sales, which the world’s largest meat processor said were market pangs that should be over in time, possibly by next spring.

But analysts looking at the results weren’t as optimistic. They predicted continued losses in the company’s final fiscal quarter that ends in September.

Tyson’s earnings loss for the April-June period -- which it blamed on weakness in its chicken and beef divisions -- was the equivalent of 15 cents a share. A year earlier, Tyson posted a profit of $131 million, or 36 cents a share. Revenue dipped 5% to $6.38 billion from $6.71 billion.

Analysts polled by Thomson Financial, on average, expected a loss of 3 cents a share on revenue of $6.63 billion. Tyson’s shares fell 42 cents to $14.15.

The Springdale, Ark.-based company said a persistent glut of chicken, in particular, had led to lower sales prices.

But Chief Executive Richard L. Bond said the company was headed in the right direction with a $200-million cost savings plan in place. He also said Tyson planned to cut chicken production by 5% by year’s end.

Bond noted that the beef market should be helped by last week’s decision by Japan to lift its ban on U.S. beef.

He predicted that Tyson would see a return to positive profit margins by late spring or early summer of next year.