Post by unlawflcombatnt on Nov 12, 2007 15:18:34 GMT -6
from Yahoo News:
Tyson Foods turns profit and sees weakness in '08
By Bob Burgdorfer
11/12/07
"Tyson Foods Inc (TSN.N), the world's largest meat company, on Monday reported a fiscal fourth-quarter profit compared with a year-earlier loss, but its shares fell more than 7 percent in early trading as the company forecast a lower profit for fiscal 2008."
Hiring Americans at market-level wages will reduce Tyson's profits by forcing them to pay American workers market-level wages, instead of paying illegal immigrants sub-market wages.
"For the fourth quarter the company earned $32 million, or 9 cents per share, compared with a year-earlier loss of $56 million, or 17 cents per share....
Revenue for the period was $6.883 billion, compared with $6.471 billion a year earlier.
The company forecast fiscal-year 2008 earnings in a range of 30 to 70 cents per share, compared with 75 cents for the just-completed year. Analysts, on average, expected $1.10 for fiscal 2008, according to Reuters Estimates...
The 75 cents for fiscal 2007 matched Wall Street estimates and was within the company's (downwardly) revised guidance of 72 to 80 cents.
"As we begin 2008, we are experiencing some challenging market conditions. Based on present assessments, we believe we will incur additional increased grain costs of approximately $300 million in the chicken segment," Tyson Chief Executive Richard Bond said in a statement. "The current beef environment is extremely difficult as well.""
If the government starts enforcing immigration laws, Tyson's going to have increased labor costs as well. But then, illegal immigration enforcement would result in not only higher labor costs,
but higher consumer income as well.
Replacement of lower-cost illegal immigrants with American workers increases aggregate worker wages and consumer income. Enforcement would also reduce the $20 billion-plus that is shipped out of the U.S. as remittances--keeping more money inside the U.S.--further increasing spendable money for the American consumer market.
Americans with more money to spend would buy more of their products. Tyson might come out ahead, despite higher labor costs--especially if other companies reduce hiring of illegal immigrants as well.
"Tyson stock fell 7.25 percent, or $1.07, to $13.66 in early New York Stock Exchange activity.
Tyson raises the chickens its processes, but buys the cattle and hogs that it processes into beef and pork. Tyson has been hurt by high corn prices as ethanol makers compete with livestock producers for the feed grain.
High cattle prices have been particularly troublesome for the company. Tight supplies of grain-fed cattle this year have kept cattle prices high, while a slower-than-expected resumption of beef exports to some countries have hurt sales."
The weakening dollar should help increase beef exports. But foreign countries are also losing income & export-purchasing power, due to income declines from export sales to the U.S.
Tyson should worry more about their American consumers than foreign consumers. American consumers comprise their biggest market, and American workers' wages fund that market.
Tyson Foods turns profit and sees weakness in '08
By Bob Burgdorfer
11/12/07
"Tyson Foods Inc (TSN.N), the world's largest meat company, on Monday reported a fiscal fourth-quarter profit compared with a year-earlier loss, but its shares fell more than 7 percent in early trading as the company forecast a lower profit for fiscal 2008."
Hiring Americans at market-level wages will reduce Tyson's profits by forcing them to pay American workers market-level wages, instead of paying illegal immigrants sub-market wages.
"For the fourth quarter the company earned $32 million, or 9 cents per share, compared with a year-earlier loss of $56 million, or 17 cents per share....
Revenue for the period was $6.883 billion, compared with $6.471 billion a year earlier.
The company forecast fiscal-year 2008 earnings in a range of 30 to 70 cents per share, compared with 75 cents for the just-completed year. Analysts, on average, expected $1.10 for fiscal 2008, according to Reuters Estimates...
The 75 cents for fiscal 2007 matched Wall Street estimates and was within the company's (downwardly) revised guidance of 72 to 80 cents.
"As we begin 2008, we are experiencing some challenging market conditions. Based on present assessments, we believe we will incur additional increased grain costs of approximately $300 million in the chicken segment," Tyson Chief Executive Richard Bond said in a statement. "The current beef environment is extremely difficult as well.""
If the government starts enforcing immigration laws, Tyson's going to have increased labor costs as well. But then, illegal immigration enforcement would result in not only higher labor costs,
but higher consumer income as well.
Replacement of lower-cost illegal immigrants with American workers increases aggregate worker wages and consumer income. Enforcement would also reduce the $20 billion-plus that is shipped out of the U.S. as remittances--keeping more money inside the U.S.--further increasing spendable money for the American consumer market.
Americans with more money to spend would buy more of their products. Tyson might come out ahead, despite higher labor costs--especially if other companies reduce hiring of illegal immigrants as well.
"Tyson stock fell 7.25 percent, or $1.07, to $13.66 in early New York Stock Exchange activity.
Tyson raises the chickens its processes, but buys the cattle and hogs that it processes into beef and pork. Tyson has been hurt by high corn prices as ethanol makers compete with livestock producers for the feed grain.
High cattle prices have been particularly troublesome for the company. Tight supplies of grain-fed cattle this year have kept cattle prices high, while a slower-than-expected resumption of beef exports to some countries have hurt sales."
The weakening dollar should help increase beef exports. But foreign countries are also losing income & export-purchasing power, due to income declines from export sales to the U.S.
Tyson should worry more about their American consumers than foreign consumers. American consumers comprise their biggest market, and American workers' wages fund that market.