Tyson shares hit their highest in more than a year after the meat producer posted a record first-quarter earnings and forecast better margins at its reviving chicken business, America's largest.

Donnie Smith, in his second results statement as chief executive, said that the US group was "developing momentum that I believe will continue through the year and into 2011" after reporting earnings of $160m for the three months to January 2.

The result, equivalent to $0.42 a share, beat Wall Street forecasts of a $0.18-a-share result.

Cock-a-hoop

The improvement from an after-tax loss of $102m a year before was driven by the chicken division, which recovered from a $286m loss to $78m profit.

"Chicken began to show the improvement we've been working toward for more than a year," said Mr Smith, who was in charge of Tyson's poultry division before being promoted to chief executive last November.

And the group said it expected that operating margins, which hit 3.2%, would rise further, helped by lower corn costs and a market tightened by low levels of meat in cold storage, a dynamic also highlighted by rival Pilgrim's Pride on Thursday.

"First thing we have to do is more consistently generate operating margins in that 5-7% range, which we should do this year," Mr Smith said.

Dumping claim

However, the group made no comment on news that China is to apply anti-dumping duties to US chicken, claiming that American group export some products at less than the cost of production.

Tyson said it had not had sufficient time to study China's move, which will apply a 43.1% duty on imports of the company's chicken, and up to 80.5% levies on poultry shipped by other companies.

The levy follows Google's decision to flout Beijing censorship, a stand-off between miners and China, and last year's trade spat over Chinese tyre exports to America.

It also comes three weeks after Russia, in effect, banned US chicken imports, over concerns about the chlorine used by American processors for cleaning carcasses.