Tyson CEO: Beef, Pork to offset weak chicken business in 2011

Tyson Foods Inc. (TSN) Chief Executive Donnie Smith said earnings per share this fiscal year would be shy of that the year before, though strong performances by beef and pork would offset depressed chicken pricing, historically high input costs and the effects of a slack economy.

Much of the company's gains in the chicken business are being wiped out by additional grain and feed-ingredient costs, he said, though he was optimistic about the business.

"Industry fundamentals are beginning to improve, and that should support the pricing we need to offset our higher inputs," Smith said, according to a press release recounting statements he made at a conference this week.

In the fiscal third quarter, the company's most recent, profit fell 21%, largely because of the weak chicken market.

Smith said the chicken segment's 1% return on sales in the fiscal third quarter would have been nearly 10% if not for the higher input costs. "That would have been a record quarter, despite unusually low chicken prices," he said.

Last year, the largest U.S. meatpacker reported $2.06 a share in earnings. Analysts surveyed by Thomson Reuters most recently expected $1.94 a share this year, which ends at the end of the month.

Shares were down 0.6% at $17.09 in after-hours trading.