The U.S.' largest meat processor benefitted from strong export demand and higher prices for beef and pork. Fred Katayama reports. Results easily beat analysts' forecasts.
Higher prices for beef and pork helped fatten quarterly results at Tyson Foods. The U.S.' largest meat processor also benefited from strong export demand. China lifted its ban on beef from the United States earlier this year. Overall revenue rose 4.8 percent - the third time in two years that it's increased. Tyson brands include HIllshire Farms, Jimmy Dean and Ball Park. The beef business is Tyson's largest unit, and sales there rose nearly 6 percent. Profit fell, but as with revenue, easily beat Wall Street's estimates. Tyson raised the low end of its adjusted profit forecast for the year. RBC Capital Markets analyst David Palmer said, "Better than expected EBIT (earnings before interest and taxes) was driven primarily by higher-than-expected beef, pork and prepared foods segment profit." Tyson shares rose at the start of trading Monday, adding to their 3 percent gain this year.