Tyson Foods 2011 Annual Report Download - page 26

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26
Pork Segment Results
in millions
2011
2010
Change 2011
vs. 2010
2009
Change 2010
vs. 2009
Sales
$5,460
$4,552
$908
$3,875
$677
Sales Volume Change
4.1%
(3.3)%
Average Sales Price Change
15.2%
21.4%
Operating Income
$560
$381
$179
$160
$221
Operating Margin
10.3%
8.4%
4.1%
2011 vs. 2010 –
●
Sales and Operating Income –
●
Average sales price increased due to price increases associated with increased livestock costs. We have maintained
strong
operating income
by maximizing our revenues relative to the rising live hog markets, partially attributable to
strong export sales and operational and mix performance.
●
Derivative Activities – Operating results included the following amounts for commodity risk management activities
related to forward futures contracts for live hogs. These amounts exclude the impact from related physical sale and
purchase transactions, which impact current and future period operating results.
Income/(Loss) – in millions
2011
$(32)
2010
(36)
Improvement in operating results
$4
2010 vs. 2009 –
●
Sales and Operating Income –
●
We increased our operating margins by maximizing our revenues relative to the rising live hog markets. In addition,
we had an improvement in our export sales. Operating results included an increase in incentive-based compensation.
●
Derivative Activities – Operating results included the following amounts for commodity risk management activities
related to forward futures contracts for live hogs. These amounts exclude the impact from related physical sale and
purchase transactions, which impact current and future period operating results.
Income/(Loss) – in millions
2010
$(36)
2009
55
Decline in operating results
$(91)