Tyson Foods Inc. on Monday reported that its second-quarter loss widened to $104 million on tax and restructuring charges, although its struggling chicken business showed some signs of life.

Meanwhile, the Springdale, Ark.-based protein giant said it is too early to predict how the 2009 H1N1 virus will affect the company's performance, noting that a discovery of the illness in a Canadian hog herd only came to light in the last few days.

However, executives said in an analysts' call that Tyson likely would not discontinue importing Canadian pigs, and that export bans on U.S. pork largely have been implemented by countries that represent a minimal share of Tyson's export business.

"I don't think the bans as they have occurred are going to have a big impact on our ability to clear volume," Tyson Group Vice President and International President Rick Greubel said.

Shares of Tyson were $11.43, up $87 cents, in early-afternoon trading on the New York Stock Exchange.

Tyson suffered a loss of $104 million, or 28 cents per diluted share, in the quarter ended March 28 compared with a loss of $5 million, or 2 cents per share, in the year-earlier quarter. Excluding items including 17-cent impact from a change in the method the company uses to estimate taxes, the loss from continuing operations was 5 cents per share.

Chicken
Tyson's chicken business slightly widened its operating loss to $46 million from $45 million, but sales rose more than 9 percent to $2.36 billion from $2.16 billion on a 15 percent jump in sales volume and lower chicken prices.

Interim President and CEO Leland Tollett noted the segment has been profitable since the end of February, also citing better operational efficiencies, improved product mix and more favorable grain costs.

However, company officials said they are "cautiously optimistic" amid demand uncertainty and that margins won't likely reach normalized levels until fiscal fourth quarter.

Beef
Beef operating income more than quadrupled to $28 million from $6 million on lower average live prices, while sales fell 11 percent to $2.42 billion on a 3.4 percent volume decline. Tyson took a $17 million charge related to the restructuring of its Emporia, Kan., slaughterhouse.

Pork
Pork operating profits fell 58 percent to $29 million from $69 million. Sales rose 2.4 percent on higher average sales prices, but higher average live prices and a dip in sales volume were limiting factors, the company said.

Prepared foods
Profits in the company's prepared foods segment fell 21 percent. Sales rose 8 percent on higher average sales prices and increased sales volumes, but results were offset in the first six months of fiscal 2009 by higher raw material costs. Closure of Tyson's Ponca City, Okla., processed meats plant cost $15 million in the first half of the fiscal year.

Overall sales in the second quarter decreased to $6.31 billion from $6.34 billion.

Analysts polled by Thomson Reuters expected a loss of 6 cents per share on revenue of $6.64 billion.

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