Snowy Owl
Retired in 2010, In Memoriam
US: H5N1 already affecting American producers
Thanks to the reader who sent the link to this Reuters story: Tyson slashes forecast as bird flu cuts exports.
Tyson Foods Inc. on Wednesday posted a much wider-than-expected quarterly loss, based on preliminary results, and slashed its full-year outlook, as chicken exports fell due to the bird flu crisis overseas.
Tyson, the largest U.S. meat processor, also said increased cattle supplies are hurting its beef margins, and its shares fell more than 6 percent in after-hours trade.
Analysts had already lowered estimates for Tyson's earnings in recent weeks, but the forecast on Wednesday was far worse than expected.
"I think most observers knew this was going to be a bad quarter, but this is very, very bad," Thomas Morabito, analyst at Susquehanna Financial Group, said. "It just shows that while most people knew that the (meat) business was very, very difficult right now, the business is worsening."
My reader comments: "The numbers in this story may not seem like much to the average Joe, but I can assure you--since covering these markets is something I do on a routine basis--these numbers from Tyson are huge. If this trend continues for U.S. companies, there are going to be major layoffs and plant closures."Tyson, the largest U.S. meat processor, also said increased cattle supplies are hurting its beef margins, and its shares fell more than 6 percent in after-hours trade.
Analysts had already lowered estimates for Tyson's earnings in recent weeks, but the forecast on Wednesday was far worse than expected.
"I think most observers knew this was going to be a bad quarter, but this is very, very bad," Thomas Morabito, analyst at Susquehanna Financial Group, said. "It just shows that while most people knew that the (meat) business was very, very difficult right now, the business is worsening."