DAKOTA DUNES, S.D. (Reuters) – Beef and pork processor IBP Inc. has reported that its second quarter net income fell almost nine percent due to an accounting charge, while sales were up slightly.
IBP, the top beef processor in the United States, is being acquired by Tyson Foods Inc. IBP said operating earnings in its combined fresh meat business rose 16 percent while there was a small loss in its Foodbrands America business.
Net income was $42 million US in the quarter compared with $46 million a year ago, matching analysts’ forecasts. Without the accounting charge, net income rose nine percent to $52 million.
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Net sales rose to $4.4 billion in the second quarter from $4.3 billion a year ago. Net sales for the first half of the year were $8.5 billion, up from $8.2 billion last year.
Operating earnings for IBP’s combined fresh meat business rose to $114 million in the second quarter from $98 million a year ago. The Foodbrands America business reported operating losses of $5 million for the second quarter compared with operating earnings of $2 million a year ago. Total export sales rose slightly in the second quarter from a year ago, while shipments to the Far East remained about five percent below year-ago levels.
