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Tyson also reported a 4.4 percent increase in
third-quarter profit and forecast sales for fiscal year ending
September 2015 above the average analyst estimate.
The company said it would use proceeds from the sale to pay down
debt associated with its $7.7 billion acquisition of Hillshire
Brands Co <HSH.N>, which is expected to close in the current
quarter.
"Although these are good businesses with great team members, we
haven't had the necessary scale to gain leading share positions
in these markets," Chief Executive Donnie Smith said in a
statement.
Tyson had outbid Pilgrim's Pride, which is majority owned by JBS,
with its $63 per share offer for Hillshire in June that valued
the maker of Jimmy Dean sausages at $8.7 billion including debt.
Tyson said on Friday it was discontinuing operations at three of
its factories which make processed meat products such as
sausages and hot dogs.
Tyson on Monday reported net income attributable to the company
of $260 million, or 73 cents per share, in the third quarter
ended June 28. Excluding items, Tyson earned 75 cents per share.
Revenue rose 10.9 percent to $9.68 billion from $8.73 billion,
helped by higher demand for chicken and pork products.
Analysts on average had expected the company to post a profit of
78 cents per share on revenue of $9.47 billion.
The company said it expects 2015 net sales of $42 billion, above
the average analyst estimate of $38.75 billion, according to
Thomson Reuters I/B/E/S.
Tyson's shares were slightly up in premarket trading on Monday
after closing at $39.54 on the New York Stock Exchange on
Friday.
(Reporting by Lisa Baertlein in Los Angeles and Shailaja Sharma
in Bangalore; Editing by Maju Samuel and Saumyadeb Chakrabarty)
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