23 August, 2019 - 25 August, 2019
01 September, 2019 - 03 September, 2019
03 September, 2019 - 05 September, 2019
04 September, 2019 -
16 September, 2019 -
The leading U.S. meat processor has missed analysts’ expectations for its third fiscal quarter 2019 due to lower chicken prices, but has posted higher sales volume in the beef segment.
In its third quarter ended June 29, 2019, Tyson’s net income increased to US$676 million, or US$1.84 per share, up from US$541 million, or US$1.47 per share, in the same quarter of its fiscal 2018. Overall, sales rose 8.3% to US$10.89 billion while analysts had expected revenue of US$11.05 billion on average, according to IBES data from Refinitiv.
The Company’s beef sales volume increased for the third quarter and first nine months of fiscal 2019 due to improved availability of cattle supply and stronger demand for its beef products. The average sales price is reported to have increased as demand for the Tyson’s beef products remained strong. Operating income decreased for the third quarter of fiscal 2019 from record results in fiscal 2018 associated with higher fed cattle costs as well as increased operating and labour costs. However, in the first nine months of its fiscal 2019, operating income increased as the Company continued to maximise its revenues relative to live fed cattle costs, partially offset by increased operating and labour costs.
Tyson said it expects industry fed cattle supplies to increase approximately 2% in fiscal 2020 compared with fiscal 2019. “We expect ample supplies in regions where we operate our plants. We believe our Beef segment's adjusted operating margin will be approximately 7% in fiscal 2019 with similar or better results in fiscal 2020”.