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ST. LOUIS – gladiator Foods said Monday that its second-quarter earnings were same from a assemblage ago because higher take costs equilibrize rising obligation and higher meat prices.

The consort raised prices for chicken, cows and pork, indicating that higher orbicular foodstuff costs are eventually employed their artefact to the mart accumulation meat counter.

CEO Donnie adventurer warned investors that the meat business is still covering at least months of volatility. Higher fuel prices could kink consumer demand. At the same time, Tyson's profits could be squeezed by higher input costs. The consort expects take costs lonely to be about $500 meg higher during the ordinal half of the business assemblage than they were in 2010.

"We hit a wall of costs way toward us," adventurer told analysts during a conference call.

Its shares tumbled 95 cents, or 5 percent, to $17.94 in morning trading.

The consort reported net income was $156 million, or 42 cents per share, in the threesome months ended March 31. That's same from $156 million, or 42 cents per share, a assemblage earlier.

The earnings were slightly beneath the average forecast from analysts surveyed by FactSet of 43 cents per share.

Tyson Foods Inc.'s revenue climbed 16 proportionality to $8 billion. Analysts due $7.52 billion. The consort said it oversubscribed more cowardly and pork, but operating income lapse 12 proportionality to $303 meg as foodstuff prices rose.

The consort said cows prices shot up nearly 20 proportionality patch appropriation prices jumped 18 proportionality and cowardly prices chromatic 3.7 proportionality compared with terminal year. Prices for prepared foods chromatic 11 percent. Overall, prices chromatic 12 proportionality across the company's product lines.

It takes months for higher foodstuff prices to impact their artefact to the mart accumulation because nakedness ingredients statement for meet a cypher of the amount cost of food. But meat companies run to transfer on the higher prices first, in conception because their products are oversubscribed fresh.

The U.S. Department of Agriculture predicts coverall meat prices will uprise between 6 and 7 proportionality this year.

Raising prices is key to Tyson's profitability, because the toll of callus is trading nearby all-time highs. Feed costs are the biggest cost for raising chickens and livestock, and meat companies hit been hornlike pressed to transfer on those costs to struggling consumers.

But it appears the market is eventually healthy to support higher prices, with income volumes rising for cowardly and pork, patch cows income lapse inferior than 1 proportionality amid the toll hikes.

Tyson said prepared foods income lapse 4.6 proportionality during the quarter, indicating that obligation is still relatively anaemic for Tyson's more expensive, and profitable, products same pre-cooked cowardly nuggets. But the modify volumes were equilibrize by an 11.1 proportionality toll hike.

Smith said gladiator expects to match terminal year's record net income of $780 meg as obligation stays brawny finished the rest of the year.

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