US meat giant Tyson Foods has said it is "optimistic" about its fiscal 2013 results, despite a second-quarter that was "more challenging than anticipated".
Speaking at the Goldman Sachs 17th Annual Agribusiness Conference, Tyson COO James Lochne said margins had been compressed throughout the past month, particularly in its beef and pork segments. He added that the value of beef had fallen more than the price of cattle, also hitting margins.
"Historically, adjustments occur that allow for a spread between the revenue and the cattle cost. We run our plants for margin, not market share," he said.
Nonetheless, Lochner said the company expects to continue its strong performance in the back half of the year and is "optimistic" about its results for the full year.
Looking to fiscal 2014 and beyond, Tyson said it expects total company top-line sales to grow 3% to 4% annually and value-added sales to grow between 6% and 8%.
The company also plans to focus on improving international sales in Brazil, China, India and Mexico.
Earlier this month, Tyson said fiscal 2013 was off to "a good start" after it booked an increase in first-quarter earnings. Last week it announced the acquisition of local tortilla, salty snack and pretzel maker Don Julio Foods.
