Tyson Foods, the biggest U.S. meat processor, raised its full-year profit forecast, helped by a sharp drop in feed and livestock costs.
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While chicken sales fell 5 percent in the first quarter ended Jan. 2, operating margin in the business rose to 13.6 percent from 12.6 percent, helped by a $60 million drop in feed costs, the company said.
Higher domestic availability of beef and pork drove down average sales prices and livestock costs, Tyson said.
Cost of goods sold in the quarter fell nearly 20 percent to $7.95 billion.
Net income attributable to Tyson rose to $461 million, or $1.15 per share, in the first quarter ended Jan. 2 from $309 million, or 74 cents per share, a year earlier.
Revenue fell 15.4 percent to $9.15 billion.
Analysts on average had expected earnings of 89 cents per share on revenue of $10.07 billion, according to Thomson Reuters I/B/E/S.
The company also said it expected adjusted earnings of $3.85- $3.95 per share for the year ending September, up from its previous forecast of $3.50-$3.65.
Shares were up 4 percent at $54.10 in premarket trading on Friday.
(Reporting by Sruthi Ramakrishnan in Bengaluru, Editing by Anil D'Silva)