US meat giant Tyson Foods has booked a drop in full-year profits as the company battled increasing grain and feed ingredients costs.
In the 12 months ended 1 October, net profit slumped to US$576m from $733m in the prior year, the company reported today (19 November).
Operating profit in the period slid 3.1% to $1.25bn, which Tyson blamed on increased grain and feed ingredients costs of $320m for the year, in addition to operating losses from its foreign start-up businesses in Brazil and China. Compressed pork margins caused by the "excess" domestic availability of pork products also hit operating profits.
Full-year sales, however, climbed 3.1% to $33.28bn.
In the fourth quarter, net profit soared 90.7% to $185m, while operating profit climbed 93% to $332m. Sales were impaced by domestic production cuts made in late fiscal 2011 and so dropped 0.3% to $8.37bn.
