WATT PoultryUSA - January 2012

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NET INCOME DOWN

Tyson net income drops
54% in fourth quarter

Tyson Foods Inc. reported its fourth quarter 2011 net income at $95 million, as compared to $208 million in 2010, down 54% from last year. For the ;scal year, Tyson’s net income was down 4.18% from 2010, to $733 million.

The overall operating margin was 2% in the fourth quarter of 2011, with a chicken operating loss of $82 million or - 2.9% of sales. The company’s beef operating income was $118 million or 3.4% of sales, pork operating income was $113 million or 7.9% of sales, and prepared food operating income represented 3.4% of sales at $28 million.

Tyson did report strong sales of $8.4 billion in the fourth quarter, up 12.9%

compared to last year.

“In ;scal 2011, we produced record sales and our second best EPS in company history despite record input costs, which included $675 million in additional feed and ingredient costs in our chicken segment,” said Donnie Smith, Tyson’s president and CEO.

For ;scal 2012, the company expects chicken industry production will decrease approximately 4% from ;scal 2011, which should gradually improve market pricing conditions.

COMPANY EXPANSION

Aviagen poultry feed mill saves energy, expands production

Aviagen’s newly expanded poultry feed mill in Athens, Ala., is producing

Aviagen’s Alabama mill has seen natural gas use drop by 28% since the upgrades.

30% more feed while reducing its electric, natural gas and diesel gas costs by $169,836 and cutting its CO; emissions by 615 tons, according to the company.