Tyson 3Q profit falls but beats expectations

August 8, 2011 - 8:15 AM
Earns Tyson Foods

FILE - In this May 8, 2011 photo, Jamey Boccio opens a bag of frozen Tyson Chicken Nuggets at her home in Palo Alto, Calif. Tyson Foods is reporting a fall in earnings growth for its third quarter Monday, Aug. 8, 2011, but the results beat expectations on higher pork profits. (AP Photo/Paul Sakuma, File)

SPRINGDALE, Ark. (AP) — Tyson Foods is reporting a 21 percent drop in earnings for its third quarter, but the results beat expectations on higher pork profits.

Expensive grain has wiped out profit margins for meat companies. But pork prices have risen high enough to boost profit margins in Tyson's swine division to 8.8 percent, compared to 1 percent for chicken.

The largest U.S. meat company says its net income fell to $196 million, or 51 cents per share, in the three months ended July 2. That's down from $248 million, or 65 cents per share, a year earlier.

Tyson Foods Inc.'s revenue rose 11 percent to $8.25 billion.

The earnings beat the average forecast from analysts surveyed by FactSet of 40 cents per share on $8.27 billion in revenue.