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Largely -- fuel price increases and strong demand overseas helping Tyson Foods second quarter earnings.
And beat the street shares of the nation's largest meat process -- are actually trading higher up 71 cents right now 1870 thought and this stock right now.
Is leading the S&P.
Right now is the biggest Gainer in the S&P Timothy -- -- from DA Davidson joins me right now ten Tyson.
Having issue with beef products in the quarter that was one of the what really the only problem here what is -- the biggest challenges.
And house can have that the company long term in particular with this pink slime controversy.
But in the beef segment was expected to have a difficult.
First second quarter and they the pink slime controversy definitely you know put put them back a little bit further -- -- not in that business of course but it it.
I knocked out demand for beef products in general.
For the longer term I would think it's actually a positive for the industry because it takes capacity out of industry.
OK it will all the other issue that there are the chicken company let's focus on the -- -- because really what we've seen.
In the process of having a problem -- keeping up what this -- the demand for dark meat as a completely different bird.
Raise completely different what the wings do you think that Tyson's gonna actually address system and is that a way for -- to actually profit.
In the next couple of quarters -- the next couple years -- that can change around production.
Well sure although it it it is the same per day -- -- to went out that they come with both breasts wings and size.
-- this is always been a part of the bird that's been difficult to sell we sell it overseas.
We sell at a discount.
And so greater US demand for dark meat it's been terrific.
For the poultry processors and I think yeah that was a big party upside surprise certainly in the two Q.
And -- you know this is.
You don't not growing season although I have to believe that.
That the good weather this spring has helped and it's gonna get better as we get further -- -- releases.
-- examine obviously I know it's the same chicken trust me but at the same time it's it's how it's race and -- -- me is actually what the types of chemicals put into the bird.
The changes the date dynamic of the of the chicken let me ask you this overall.
Overseas demand for Tyson that has been something that looks to me from the analysts community from -- ads as well that it does seems to be a positive.
For Tyson do you think that the -- markets are gonna be a better.
Profit driver for Tyson -- the domestic market.
Yet the expert market has been terrific for all the proteins -- Poultry beef.
And you know that's been really good for the margin structure because for every pound is.
Protein that we sell elsewhere in the world we we don't have I have that to sell here so it tightens up the supply situation here.
And that's that was one of the objectives of getting margins back in the -- sector in particular.
Let me ask you this -- other grilling season was somewhat of a disappointment.
For many of -- company's Tyson in particular last year or.
Do you think because of the warmer weather.
That that's gonna be a positive for Tyson.
Well it certainly was a positive this spring -- getting them started earlier.
And they said that there and really good shape for Memorial Day weekend.
And Memorial Day weekend was not great last year it's probably too early to know about fourth of July we can.
This this year just seems to have a much better tone to it than last year part of that is because food service demand has accelerated quite a bit as well.
-- -- anything Davidson and company -- thank you very much for joining us and talking about earnings Fox Business does have you covered throughout the earnings season.
Lord rocker David -- are gonna bring you results from electronic arts today and much more coming up after the bell --
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