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The
biggest U.S. meat processor said on Monday that the subpoena was
connected to an investigation, which it believed was based on a
class action lawsuit that alleged Tyson Foods colluded with
others in the broiler chicken business to reduce production
since 2008.
Tyson, which disputed the allegations when the lawsuit was filed
in 2016, said it received the subpoena on Jan. 20.
Shares of the company, which also raised its profit forecast for
the year ending September, gained as much as 8 percent in
premarket trading, but pared some gains after the company
announced the receipt of the subpoena.
Net income attributable to Tyson rose to $593 million, or $1.59
per share, in the first quarter ended Dec. 31, from $461
million, or $1.15 per share, a year earlier.
Sales rose 0.3 percent to $9.18 billion.
Analysts on average had expected earnings of $1.26 per share and
revenue of $9.05 billion, according to Thomson Reuters I/B/E/S.
Tyson said it expected full-year profit of $4.90-$5.05 per
share, up from its earlier forecast of $4.70 to $4.85.
The company's shares were up almost 3 percent at $67.26 in
premarket trading.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Sriraj Kalluvila)
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