On Jan. 29, Tyson Foods (NYSE:TSN) released first-quarter earnings for the period ended Dec. 30.

  • Net sales increased by 1.6%, as a result of volume surges in the beef, chicken, and pork segments.
  • Management recognized Tyson's new Cost Management Initiative as a primary driver of the company's net profits, also decreasing selling, general, and administrative expenses by $44 million.
  • Tyson Foods is only a 1-star stock in CAPS, our new interactive stock database; apparently our CAPS community doesn't think Tyson will out-grill the S&P 500.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$6,558

$6,454

1.6%

Net Profit

$57

$39

46.2%

EPS

$0.16

$0.11

45.5%

Diluted Shares

353

358

(1.4%)

*Includes income from continued operations

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

5.1%

5.3%

(0.2)

Operating Margin

2.2%

1.7%

0.5

Net Margin

0.9%

0.6%

0.3

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$45

$30

50.0%

Accounts Rec.

$1,135

$1,254

(9.5%)

Inventory

$2,046

$2,154

(5.0%)



Liabilities

Q1 2007

Q1 2006

Change

Trade Accounts Payable

$1,064

$1,155

(7.9%)

Long-Term Debt*

$2,961

$2,988

(0.9%)

*Includes current portion of long-term debt

Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Operations

$321

$183

75.4%

Capital Expenditures

$43

$189

(77.2%)

Free Cash Flow

$278

($6)

N/A



Find out why Fools always follow the money.

Related Companies:

  • Hormel Foods (NYSE:HRL)
  • ConAgra Foods (NYSE:CAG)
  • Smithfield Foods (NYSE:SFD)

Related Foolishness:

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