Despite surging wheat prices, Tyson announced today that its income rose 89% in the recent quarter. The AP has more:
The company has been working through an industry wide downturn brought on by a combination of higher production costs and slumping demand as shoppers cut back on trips out to eat.When asked about the current wheat situation, Tyson execs lets reporters in on their proactive solution (via FT.com):
The Springdale, Ark.-based company said its prepared foods unit struggled in the quarter because of rising ingredient costs but still made money.
The company reported net income of $248 million or 65 cents per share in the quarter ending July 3, up from $131 million, or 35 cents per share last year.
Revenue rose 11.6 percent to $7.44 billion.
However, Tyson said it had insulated itself by purchasing call options earlier this year, and that the company, which relies on corn and wheat grain to feed its livestock, was confident of this year’s corn crops in the US and Latin America.Further Reading:
Read the Tyson press release
The New York Times has a in-depth look at Tyson's announcement
