- Tyson reduces FY outlook
- Beef segment weighs
- Q3 sales and earnings rise
Tyson Foods today (3 August) lowered its forecast for annual earnings after issues at its beef business dampened the US protein company's third-quarter results.
The company said "unless beef market conditions improve rapidly" it will not hit its prior full-year guidance of adjusted earnings per share of US$3.30-$3.40. Tyson cut its outlook to a range of $3.10-$3.20 per share.
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CEO Donnie Smith explained: "Our beef business suffered from export market disruptions that had an $84 million impact on third-quarter results, and we continue to see very high cattle costs at a time when product values and export issues are making it difficult to realise expected revenue levels in this spread business."
Decreased profitability in beef was, however, somewhat offset by a strong performance from Tyson's prepared foods and chicken segments, Smith added. "The prepared foods and chicken segments performed very well in the fiscal third quarter while managing numerous challenges. The strong results in these two segments demonstrate the benefits of our branded, value-added product portfolio and multi-channel, multi-protein business model."
Overall sales in the three months increased 4% to $10.1bn. Group operating income rose to $563m from $351m.
Shares in Tyson were down 9.47% in pre-market trade this morning.
