Tyson Foods reported on August 7, a record adjusted operating income of $2.36 billion for the first fiscal nine months of the year and adjusted earnings per share up 13% compared with the same period last year. In the past three months, adjusted operating income was $756 million with an adjusted operating margin of 7.7%.

“Our team delivered solid results in our third quarter with three of four segments on a GAAP basis and all four segments on an adjusted basis achieving operating margins in or above their normalised ranges. Our total net sales grew 4.8% compared to third quarter of 2016, and every segment delivered volume growth behind a strong start to grilling season and new product innovation,” said Tom Hayes, President and CEO of Tyson Foods.

“The Beef and Pork segments were very strong performers in the third quarter, and continued generating cash to fuel investments in our value-added Chicken and Prepared Foods businesses. Volume growth in our Core 9 retail and Focus 5 foodservice businesses again outpaced the industry as we built momentum with customers by satisfying consumer appetites for value-added protein and fresh foods.

Beef – Sales volume increased for the nine months and third quarter of fiscal 2017 due to improved availability of cattle supply, stronger domestic demand for Tyson’s beef products and increased exports. Average sales price for the nine months of fiscal 2017 decreased due to increased availability of live cattle supply and lower livestock cost.

Average sales price for the third quarter of fiscal 2017 increased as demand for its beef products and strong exports outpaced the increase in live cattle supplies. Operating income increased due to more favorable market conditions as we maximized revenues relative to the decline in live fed cattle costs, partially offset by higher operating costs. 

Looking ahead, Tyson expects industry fed cattle supplies to increase approximately 1-2% in fiscal 2018 as compared to fiscal 2017. The company believes its Beef segment’s operating margin should be around 5% for fiscal 2017 with similar results in fiscal 2018.