HUTCHINSON, Kan. — The fire at the meat processing facility in Holcomb earlier this year shunted Tyson Foods bottom line. The meat processing company released its fourth-quarter revenue on Wednesday.
The fire at the Holcomb, Kansas, slaughterhouse in August left restaurants, food service companies and grocery chains scrambling to buy beef from other facilities.
As a result, volumes in Tyson’s business fell 4.2% in the fourth quarter, with sales down 1.3%. The fire also resulted in $31 million of net incremental costs, the company said.
Tyson’s operating margins for beef were 9.7%, up from 8.9% a year earlier. Margins declined in its pork, chicken and prepared foods units. Excluding items, the company earned $1.21 per share, compared with the average analyst estimate of $1.29.
Total sales rose nearly 9% to $10.8 billion on strength in its pork and chicken segments, but missed the average estimate of $11 billion. Tyson operates meat processing facilities in Hutchinson and South Hutchinson.