Tyson Foods Inc reported weaker-than-expected quarterly sales and earnings and lowered its full-year outlook as higher meat prices dented U.S. demand, and its shares fell 4.5 percent.
The nation's largest meat company predicted further price increases, as the worst drought in more than a half-century pushes up prices for feed corn, but said its chicken business would remain profitable next year.
Tyson's beef and pork segments have been experiencing "very difficult market conditions" that will result in lower-than-expected 2012 profit, Chief Executive Donnie Smith said, adding that rising grain costs would hurt earnings next year.
"While we ultimately expect to pass along rising input costs, these costs, coupled with continued soft demand, are likely to pressure earnings in 2013," Smith said.
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