US-based Tyson Foods has reported that its net income decreased by 42.77% to $95m for the second quarter of 2013, compared with $166m for the same quarter in 2012 due to higher feed costs even as shoppers and restaurants preferred cheaper chicken over beef.
For the quarter ended 30 March 2013, the company posted 1.8% increase in net revenues to $8.41bn, compared with $8.26bn a year ago.
Tyson Foods stated that the higher priced beef products, particularly premium cuts and Angus varieties, experienced decreased sales. With the decline in income for the quarter, the company lowered its full-year net sales estimate to about $34.5bn from its November forecast of $35bn.
Tyson Foods president and chief executive officer Donnie Smith said that the second quarter typically is the most challenging..
"However, our business is structured to withstand adverse conditions, and we worked through the issues while positioning ourselves for what we believe will be a strong performance in the second half of the year," Smith added.
For the six-month period, the company's net earnings declined 16.7% to $268m, compared with $322m in 2012, while net sales were up 1.8% to $16.8bn, compared with $16.5bn for the same period a year ago.
For the full-year 2013, Tyson Foods expects net sales of approximately $34.5bn, capital expenditures of about $550m-$600m and net interest expense of approximately $140m.
