Tyson Foods Inc., the world's largest meat producer and Storm Lake's largest employer, said this week that it lost $5 million in its second-quarter as it faces high feed and fuel costs and absorbed charges for previously-disclosed plant closings.
Tyson lost 2 cents a share in the three months ended March 29 versus a profit of $68 million or 19 cents per share in same period a year ago.
The loss includes $47 million in charges for plant closings and asset impairments.
Tyson's sales were $6.61 billion compared with $6.50 billion in its second quarter a year ago.
Analysts polled by Thomson Financial had projected Tyson would earn a penny per share on revenues of $6.69 billion.
Tyson Foods President and CEO Richard L. Bond said that, despite the increased costs, the company had a strong quarter.
"Our second quarter results show the strength of a diversified protein business model," Bond said. "Our chicken and pork exports continue to be strong, and we are moving forward with our strategy for international expansion."
The reopening of South Korea to U.S. beef will help starting in the third quarter, Bond said.
"For the year, corn and soybean meal increases are likely to approach $600 million. Including other inputs such as cooking oil, breading and other feed ingredients, the increase in costs for the fiscal year may approach $1 billion compared to fiscal 2007," Bond said.
Pork accounted for 12 percent of Tyson sales for the quarter at $822 million, and the segment, including Storm Lake production, earned $20 million.