Tyson Foods Inc.'s fiscal fourth-quarter earnings fell short of expectations, and the meat processor predicted that its current fiscal year could be an even bigger disappointment if the beef business remains depressed.

The Springdale, Ark., company also said it plans to expand its presence in South America, China and Mexico and that it expects to increase international sales to $5 billion a year from about $3 billion.

For the fiscal year ending in September 2008, Tyson forecast earnings of 30 cents to 70 cents a share, noting uncertainty about volatile grain prices. On average, analysts surveyed by Thomson Financial had expected $1.05 a share.

Chief Executive Richard Bond said costs for chicken-feed grain are expected to rise as much as $300 million in the months ahead, and called the current market for beef "extremely difficult."

Tyson's beef business has struggled with an oversupply of cattle and worsening demand for U.S. beef overseas. The value of U.S. beef exports fell to $1.63 billion in 2006, down from $3.1 billion in 2003, according to the U.S. Agriculture Department.

Tyson incurred $118 million in additional feed-grain costs for poultry in the quarter ended Sept. 29.

Mr. Bond said Tyson is close to completing two integrated joint ventures in China and a poultry deal in Brazil.

Yesterday, Tyson shares fell 42 cents, or 2.9%, to $14.33 in 4 p.m. New York Stock Exchange composite trading.