(Reuters) — Tyson Foods Inc. has reported a 28 percent jump in quarterly profit, helped by higher chicken sales and a rebound in beef.
Tyson also estimated a one percent increase in the production of chicken, beef, pork and turkey for the fiscal year ending in September as increased grain supplies reduce the cost of raising animals.
U.S. meat producers are coming off a tough year as higher feed costs crimped margins. That pushed up meat prices, prompting many grocery shoppers and restaurant operators to switch to lower-priced meat.
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Tyson said it expected fiscal 2014 sales of $36 billion, while analysts on average had forecast $35.67 billion, according to Thomson Reuters markets information agency.
JPMorgan analyst Ken Goldman said he expected Tyson’s U.S. chicken production to increase at a slightly faster rate than the company’s forecast for a three to four percent rise.
Tyson said it expected industry hog supplies to increase one to two percent in fiscal 2014.
Executives said the outbreak of a hog virus deadly to baby pigs had begun to affect the market. Reduced supplies could push up wholesale pricing.
Tyson’s chicken sales rose 2.4 percent to $3.16 billion in the fourth quarter ended Sept. 28, accounting for 36 percent of total sales. Beef sales rose four percent to $3.75 billion, contributing 42 percent of the company’s total.
