Traders gather at the post that trades Tyson Foods on the floor of the New York Stock Exchange June 3, 2014. REUTERS/Brendan McDermid

Traders gather at the post that trades Tyson Foods on the floor of the New York Stock Exchange June 3, 2014. REUTERS/Brendan McDermid (Copyright Reuters 2016)

Tyson Foods sales drop 12.8 percent; CEO to step down

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Tyson Foods Inc reported a 12.8 percent drop in quarterly revenue, hurt by lower sales of beef and chicken, and said Chief Executive Donnie Smith would step down at the end of the year.

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Tyson's shares were down 7.7 percent in premarket trading on Monday.

The company said its president, Tom Hayes, will succeed Smith as chief executive.

The No. 1 U.S. meat processor said sales in the fourth quarter ended Oct. 1 fell to $9.16 billion from $10.51 billion a year earlier.

However, net income attributable to Tyson rose to $391 million, or $1.03 per share, from $258 million, or 63 cents per share, a year earlier.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Martina D'Couto)