Tyson Swings To 4Q Loss On Write-Down At Beef Segment

Tyson Foods Inc. (TSN) swung to a fiscal fourth-quarter loss on a $560 million goodwill write-down at its beef business. Excluding the write-down, the results beat analysts' expectations.

In the past year, Tyson has focused on what it calls a "back to basics" business approach that includes cutting costs and improving efficiencies. The meatpacker has recently benefited from rising chicken prices and volumes as well as falling grain costs and lower inventories after struggling heavily with plunging demand during the heart of the recession.

Tyson last week tapped company veteran Donnie Smith as its new chief executive. Smith said his priority early on will be to continue putting the company's chicken business, which he led until his appointment as chief, "back on track."

On Monday, Smith said all of Tyson's segments were profitable and that excluding the write-down, its beef, pork and prepared food businesses all were within or above historical operating-margin ranges. Measures are in place for "more improvement at its chicken business, he said. "The team knows what to do, and now it's a matter of execution."

New Chief Operating Officer Jim Lochner added the coming year should be "much better."

Tyson reported a loss of $455 million, or $1.22 a share, compared with a prior-year profit of $48 million, or 13 cents, a year earlier. Excluding the write-down and other impacts, earnings were 28 cents.

Revenue rose $13 million to $7.21 billion as the latest quarter had an extra week.

Analysts polled by Thomson Reuters had most recently forecast earnings of 26 cents on $6.8 billion in sales.

Gross margin rose to 6.4% from 4.9% amid reduced costs.

Chicken sales volume rose 10% as average prices edged up 0.6% and the segment swung to a profit. Volumes of beef, Tyson's largest segment, rose 14% as average prices dropped 16% and the segment moved to a loss on the write-down.

Shares closed at $13.07 Friday and didn't move premarket. They are up 49% so far this year.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail];