Tyson Foods beats third-quarter estimates

By Aidan Fortune contact

- Last updated on GMT

Tyson's third quarter was more positive than expected
Tyson's third quarter was more positive than expected
US producer Tyson Foods has shaken off internal and analyst pessimism to deliver a third quarter of solid growth.

The company’s earnings rose 21% to $541m from $447m in the same period of 2017. The business had readjusted its earnings earlier this year​ due to trade uncertainty and rising tariffs.

“We continued to grow our business in Q3, even with the headwinds we faced related to oversupply and pricing,”​ said Tom Hayes, Tyson Foods president and CEO. “In this challenging environment, we delivered a solid quarter overall, growing earnings, operating income and margins.

“Our diverse portfolio continues to be a key advantage for us. Our Beef and Prepared Foods segments had a strong quarter, helping to balance the results in our Chicken and Pork segments, which faced stiff headwinds. We have a sound strategy and a solid foundation, which will continue to serve our business and shareholders well. We remain confident in our ability to create long-term value.”

Sector breakdown

Its beef division benefited from an improved cattle supply in terms of volume sales, up 2.7% during the quarter, but this extra availability meant that the average sale price decreased, down 2.8%.

Pork didn’t fare as well, with sales volume and average sale prices down for the quarter. Operating income for the quarter was down year-on-year, due to excess domestic availability as well as higher labour and freight costs.

Tyson’s chicken sales volumes were down slightly year-on-year due to sluggish demand for certain chicken products. Its prepared foods division saw a sales volume rise over the period.

In its outlook, Tyson cited US Department of Agriculture figures, which estimated domestic protein production in 2019 should increase approximately 2-3% from fiscal 2018 levels. Tyson predicted that its beef and pork divisons’ operating margins would be 6% in 2019, with chicken up to 8%.

Related topics: Financial, United States, Beef, Poultry, Pork

Related news

Show more

Related products

show more

Webinar Case Study – Editorial Webinar

Webinar Case Study – Editorial Webinar

William Reed Business Media | 03-Dec-2019 | Case Study

Download our case study to learn how GlobalMeatNews generated brand awareness and leads for its sponsors with its October 2019 editorial webinar.

The unique natural anti-oxidant for meat applications

The unique natural anti-oxidant for meat applications

Kancor Ingredients Limited | 28-Feb-2019 | Technical / White Paper

Fresh meat is preferred in bright red colour but is highly prone to oxidation and is colour sensitive to extracts. Kancor’s OxiKan R, a highly refined...

Microbiological safety of raw-fermented sausages

Microbiological safety of raw-fermented sausages

Jungbunzlauer | 18-Feb-2019 | Technical / White Paper

Raw-fermented sausages are prone to the contamination with pathogens such as Salmonella and Listeria. Jungbunzlauer gives a new impetus to the exploration...

Related suppliers