The U.S.' largest meat processor's quarterly profit shot up sharply, but it missed analysts' targets. Fred Katayama reports.
Weak beef sales pushed Tyson Foods to chop its profit forecast for the full year to a level below Wall Street's expectations. The U.S.' largest meat processor said its beef business suffered from high cattle costs and disruptions in the export market. Its beef unit lost money in the latest quarter amid a slide in sales volume. Tyson's shares have outperformed the broader market this year, rising nearly 11 percent, but the profit warning dented that gain. Also pressuring the stock: the company's quarterly sales and profit missed analysts' targets even though income rose 32 percent. Tyson's prepared foods sales doubled, helped by its acquisition last year of the maker of Jimmy Dean sausages and Sara Lee deli meats, Hillshire Brands. But weak demand in China hurt its international unit, and pork sales fell after the divestiture of its Heinold Hog Markets business.