Tyson reports profits despite mad cow scare

Tyson Foods Inc., the world’s largest meat company, said Monday its earnings rose 46 percent for its first fiscal quarter as operating profits surged in its chicken and pork businesses and beef revenues rose despite worries about mad cow disease.

The Springdale, Ark.-based company earned $57 million, or 16 cents a share, for the three months ended Dec. 27 versus a profit of $39 million, or 11 cents a share, a year ago.

The earnings results were depressed by pretax charges of 16 cents a share. Analysts surveyed by Thomson First Call had forecast earnings of 26 cents per share before charges.

In trading on the New York Stock Exchange, Tyson shares rose $1.49, or 11 percent, to close at $14.99.

Economy

Existing-home sales set record for 2003

Sales of previously owned homes set a record high in 2003 as decades-low mortgage rates proved too good for many buyers to pass up.

The National Association of Realtors reported Monday that existing-home sales totaled 6.1 million last year, shattering the previous record of 5.57 million set in 2002. Last year’s sales represented a 9.6 percent increase from 2002’s level.

Monday’s report provided vivid evidence of the red-hot strength of the housing market, which played a main role in keeping the economy going throughout last year. In December, existing-home sales jumped by 6.9 percent from the month before, ending the year on a high note.

Pharmaceuticals

Drugmakers battling about possible takeover

Drugmaker Sanofi-Synthelabo ended weeks of speculation about a friendly merger with Aventis on Monday by launching a hostile $60.2 billion takeover bid for its larger rival — and the gloves came off.

Outlining the offer that would create a new No. 3 drugmaker with annual revenues of $31.5 billion, Sanofi — the maker of the sleeping pill Ambien — talked down Aventis’ track record in growth and profitability.

Hours later, Aventis — the maker of allergy medicine Allegra — hit back in a statement highlighting legal challenges to key Sanofi patents and warning shareholders not to be taken for a ride.

Earnings

Schering-Plough reports loss for quarter, year

Struggling drug maker Schering-Plough Corp. posted its second straight quarterly loss in the fourth quarter, mainly due to falling sales and a large restructuring charge.

The Kenilworth, N.J.-based maker of Clarinex allergy medicine and hepatitis C treatments also reported a full-year loss, the first since the company was formed by a 1970 merger.

Schering-Plough said Monday it recorded a fourth-quarter net loss of $181 million, or 12 cents per share, versus a profit of $313 million, or 21 cents a share, a year ago.

Excluding special charges of $229 million, or 13 cents per share, the company had a profit of 1 cent a share. Analysts surveyed by Thomson First Call had been expecting a 4-cent profit.