Lower beef sales for Tyson Foods

United States
Published:  13 November, 2019

Fourth-quarter beef sales for the U.S. based meat processor were said to be affected by a fire at the Tyson Fresh Meats plant in Holcomb, U.S. state of Kansas, which broke out in August.

For the fourth quarter of its fiscal year 2019, Tyson’s net income totalled US$369 million, or US$1.01 per share, down from US$537 million, or U$1.47 per share, in the corresponding period of 2018. The adjusted EPS of US$1.21, is said to have missed analysts’ estimates. Overall sales totalled US$10.88 billion, up from US$10 billion a year earlier.

In the beef division, the Company’s largest earning segment, sales volume decreased due to a reduction in slaughter processing capacity from the temporary closure of the Kansas production facility as a result of a fire. According to Tyson, average sales price increased as demand for its beef products remained strong, and operating income also increased as it continued to maximise its revenues relative to live fed cattle costs, partially offset by increased operating costs and US$31 million of net incremental costs from the production facility fire.

“Fiscal 2019 was highlighted by significant progress in our strategy to grow our business through differentiated capabilities, deliver service and value to our customers, and sustain our company and our world for future generations”, said Noel White, President and CEO, Tyson Foods. “We expanded our global footprint, launched innovation in our iconic brands and our new alternative protein brand, and prepared for future growth by investing in technology and infrastructure.”

For fiscal 2020, the Company expects to meet or exceed its long-term earnings algorithm of high single-digit adjusted earnings per share growth.