Tyson Foods Inc, said on Friday that results in its chicken unit, which lost $286 million last fiscal quarter, are improving but more work needs to be done.
The financial improvements in the chicken unit have been due to recent production cuts, new products, and customer service, company officials said during a conference call with reporters following Tyson’s annual meeting.
"We have made significant progress in this area in the last three to four weeks," interim Chief Executive Leland Tollett said. "We still have work to do and cannot rely on industry fundamentals to get to where we need to be."
Tyson, based in Springdale, Arkansas, is the world’s largest meat company, producing beef, pork and chicken. Its chicken unit, like those of its competitors, struggled in 2008 because of high feed costs, losses on grain hedges, and a drop in sales because of the global economic downturn.
Pilgrim’s Pride Corp (PGPDQ.PK), the largest U.S. chicken producer, filed for bankruptcy protection in December.
Tyson’s beef unit broke even during the fiscal first quarter ended in December versus a year earlier loss, while pork made a smaller profit versus a year earlier.
In that quarter, Tyson reported $197 million in losses related to grain hedging. On Friday, company officials said hedging losses may affect second quarter results, but going forward the company will be more.
