Hillshire deal helps Tyson beat profit estimates

US meat processor says it expects to achieve more than $250m in savings this year

The biggest US meat processor posted a better-than-expected quarterly profit, helped by its acquisition of Jimmy Dean sausage-maker Hillshire Brands last year.

Sales in the prepared foods business, under which Tyson Food primarily sells bacon, pepperoni and sausages, more than doubled to $1.88 billion, overshadowing a decline in chicken sales.

The US poultry industry is grappling with the biggest bird- flu outbreak since the 1980s. Flu cases have been confirmed in 14 states.

Tyson, which bought Hillshire to expand its prepared foods business, says it expects to achieve more than $250 million in savings this year, up from the more than $225 million it had forecast previously.


Tyson maintained its 2015 earnings forecast of $3.30-3.40 per share. – (Reuters)