The company’s earnings rose 21% to $541m from $447m in the same period of 2017. The business had readjusted its earnings earlier this year due to trade uncertainty and rising tariffs.
“We continued to grow our business in Q3, even with the headwinds we faced related to oversupply and pricing,” said Tom Hayes, Tyson Foods president and CEO. “In this challenging environment, we delivered a solid quarter overall, growing earnings, operating income and margins.
“Our diverse portfolio continues to be a key advantage for us. Our Beef and Prepared Foods segments had a strong quarter, helping to balance the results in our Chicken and Pork segments, which faced stiff headwinds. We have a sound strategy and a solid foundation, which will continue to serve our business and shareholders well. We remain confident in our ability to create long-term value.”
Its beef division benefited from an improved cattle supply in terms of volume sales, up 2.7% during the quarter, but this extra availability meant that the average sale price decreased, down 2.8%.
Pork didn’t fare as well, with sales volume and average sale prices down for the quarter. Operating income for the quarter was down year-on-year, due to excess domestic availability as well as higher labour and freight costs.
Tyson’s chicken sales volumes were down slightly year-on-year due to sluggish demand for certain chicken products. Its prepared foods division saw a sales volume rise over the period.
In its outlook, Tyson cited US Department of Agriculture figures, which estimated domestic protein production in 2019 should increase approximately 2-3% from fiscal 2018 levels. Tyson predicted that its beef and pork divisons’ operating margins would be 6% in 2019, with chicken up to 8%.