NEW YORK (Reuters): Tyson Foods Inc on Monday reported quarterly profit that beat Wall Street estimates, boosted by higher sales of its beef and prepared foods segment, which includes Hillshire Farm meat products.
The maker of Ball Park hot dogs and Jimmy Dean sausages said average prices for beef rose 2.3 percent in the quarter, while those for pork fell 8.3 percent despite a 1 percent rise in volume of sales.
“Both the beef and pork segments were solid performers, while the chicken segment is poised for improvement following what we believe are its margin lows for the year,” said Chief Executive Officer Noel White.
Average prices of chicken were down 11 percent in the quarter.
The company reiterated its earnings forecast for the year, but said that it did not have clarity on the impact of African swine fever that has rapidly spread in China since August.
The fever kills almost all pigs infected, though it is not harmful to people.
“Looking ahead, African swine fever has the potential to impact the global protein industry on a level that we have never experienced, and it is an event that will underscore the power of the Tyson business model,” White said.
