By Roby Brock
Tyson Foods Inc.’s first quarter profits were well above expectations as the Springdale-based food giant began the New Year with strong performances across the board, nearly doubling last year’s results.
“Tyson produced record sales and earnings for the fiscal first quarter of 2011,” said Tyson Foods President and CEO Donnie Smith. “Our performance is due to on-going, sustainable operational improvements across all four segments.”
For the period ended Jan 1, Tyson reported first quarter earnings of $298 million, or 78 cents per share, compared to year ago results of $160 million and 42 cents per share. Revenues rose 15.2 percent to $7.6 billion, compared to $6.6 billion in the same period of 2009.
Arkansas Best still seeing red
Trucking giant Arkansas Best posted a fourth quarter loss of $3.1 million, a far cry from last year’s $88.7 million net loss. For the full year, Arkansas Best lost $32.7 million compared to a $127.9 million loss in 2009.
Revenues climbed substantially during the quarter and for the full fiscal year. Arkansas Best reported fourth quarter revenues of $441 million compared to $371.6 million in last year’s fourth quarter. For the year, the company posted revenues of $1.66 billion versus $1.47 billion in the previous year.
Despite the headline loss, the company reported consistent gains in freight demand during the last three months of 2010. Tonnage per day was up 14.8 percent in the fourth quarter compared to the 2009 period. The percentage tonnage increase during the second and third quarters of 2010 compared to the 2009 periods were 11.9 percent and 13.9 percent, respectively.
Dillard’s sees solid sales growth
Mall retailer Dillard’s capped off a solid fiscal year with January sales rising six percent. Retail outlets typically operate on a February-January fiscal year to capture post-holiday sales in their final numbers.
Dillard’s reported sales for the four weeks ending January 29 were $376 million, up from $353.9 million in January 2010. The six percent increase in monthly sales was mirrored by same-store sales, which also climbed six percent higher.
More impressively, Dillard’s ended its fiscal year with merchandise sales of $6.02 billion, a two percent increase over sales of $5.89 billion one year ago. Same-store sales rose by three percent as the Little Rock-based upscale retailer punctuated a turnaround in its once-struggling sales.
Revenue report shows positives, but warning still abound
Boosted by growth in personal income taxes, Arkansas’ January revenue report continued to show marginal improvements for collections despite setbacks in consumer spending and corporate taxes.
Seven months into the state’s fiscal year, year-to-date net available general revenues topped $2.72 billion, up 1.4 percent from last year and 0.3 percent above forecast. For the year, individual income taxes and gross receipts are boosting the improved numbers.
State finance officials said that for the year personal income taxes and gross receipts are both trending 5-6 percent higher than a year ago, a signal that “broad-based gains across consumer and business spending” are taking place.
Arkansas export web site created
The Arkansas District Export Council has created a new website — www.arkansasexport.com — to educate, inform, and assist parties interested in expanding their market presence outside of the U.S.
According to the council, the website is designed for companies and individuals that are “both seasoned exporters who are expanding their international reach and those who are working through the export process for the first time.” The website provides information on trade leads, federal export assistance programs, export document templates, export service providers, and current affairs that affect international trade.
According to state and federal statistics, exporting is a significant driver of jobs and economic development in Arkansas. The ADEC reports that 1,583 Arkansas companies are involved in exporting activities.
Arkadelphia poultry plant to close, lose 385 jobs
Petit Jean Poultry in Arkadelphia will close on April 1, impacting 385 workers currently employed at the plant.
The company said it lost its chicken de-boning contract with Tyson Foods to a neighboring factory in Hope.
The Petit Jean Poultry plant had employed more than 700 workers at one time. Local officials are seeking an employer to take over the factory, but efforts have been unsuccessful so far.
Townsends receives $12 million financing, headed to auction
In late December, Townsends, Inc. and four of its subsidiaries filed Chapter 11 bankruptcy filing. Townsends, a family-owned, vertically integrated poultry processor with operations in multiple states, including Arkansas around the Batesville area, works with a number of farmers across northeast Arkansas.
Last week, Townsends received final approval from a bankruptcy court for a $12 million debtor-in-possession financing facility. Townsends also received approval for bid procedures for an auction process to sell the company, in whole or in part.
The process calls for bids by February 14, with the auction to follow on February 15. A hearing to consider approval of the sale is currently scheduled to be held on February 17.
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Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net.
