Source: meatingplace.com 

By Rita Jane Gabbett  

Standard and Poor’s expects Tyson Foods profit margins to widen in its poultry, pork and beef units in fiscal 2010 as it capitalizes on growth opportunities “in a protein hungry world.”

In an outlook report published last week, the rating agency tied stronger poultry margins to the expiration of adverse commodity hedging contracts. It put stronger beef margins to some plant closings and efficiency gains. Over the past two years the company converted its Tyson Fresh Meat's Emporia, Kan., plant from a beef slaughterhouse to a multiple-protein further processing facility.

S&P also noted Tyson has strengthened its balance sheet, reducing net debt to $2.1 billion at the end of its fiscal 2010 second quarter from $2.9 billion two years ago.

The report went on to say, “We expect Tyson Foods shares to benefit from global economic growth, changing consumer diets in developing international markets, improved product pricing, and what we expect will be the company’s additional success in creating operational efficiencies. Furthermore, we expect Tyson’s strategy to include a focus on an expansion in value-added food products.”

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