Tyson Cuts Forecast on Higher Grain Costs
Tyson Foods Inc., the world’s largest meat processor, reduced its full-year profit forecast because of higher costs for feed grain and a drop in beef and chicken prices.
Profit will be $1.08 to $1.15 a share in the year ending Oct. 2, down from last month’s forecast of $1.20 to $1.30, the Springdale, Ark.-based company said.
Chief Executive John Tyson cited “unfavorable results” in hedging the cost of corn, a feed ingredient, after the price of the grain plunged from a seven-year high. Chicken and beef prices fell after U.S. meat exports slumped because of an outbreak of bird flu and a lone case of “mad cow” disease.
Tyson shares fell $1.47 to $16.26 on the NYSE, their biggest one-day drop since March 2003.
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