Tyson Foods Experiencing Short-term Challenges in Fiscal Fourth Quarter
September 03 2019 - 3:15PM
Tyson Foods, Inc. (NYSE: TSN) today said it is experiencing
short-term challenges that are negatively affecting fourth quarter
earnings. These challenges include margin compression related to a
reversal of a gain on mark to market grain derivatives recognized
in our third quarter, commodity market volatility, implementation
of enhanced food safety initiatives, a beef processing plant fire,
and slower than expected operational improvements in the Chicken
segment. As a result, the company is revising its fiscal 2019
adjusted1 earnings guidance to a range of $5.30 to $5.70 per share
and we continue to monitor potentially adverse mark-to-market
movements and other volatilities.
“The discrete challenges we’ve encountered this quarter now lead
us to believe we will fall short of our previously stated
guidance,” said Noel White, Tyson Foods’ president and CEO, “but
our outlook for fiscal 2020 remains positive as we believe some of
the challenges we’re experiencing are not expected to repeat, and
we’re expecting more favorable market conditions as well.
“Our portfolio is structurally sound and generating strong sales
volumes. Our volumes are strong in the back-to-school season while
our case-ready beef and pork business continues to grow. Our
international business is exceeding expectations as our legacy
business outperforms the prior year and we continue to integrate
Keystone and the newly acquired Thai and European assets.
“Our diversified portfolio is uniquely suited to respond to
dynamic and challenging market conditions, and we continue to
expect better performance in fiscal 2020. We’re very optimistic
about our long-term potential as we focus on prepared foods growth,
international growth and serving our customers.”
Tomorrow, Sept. 4, White and CFO Stewart Glendinning will
participate the in the Barclays Global Consumer Staples Conference
in Boston. Their presentation will take place at 8:15 a.m. EDT and
will be webcast live. The webcast will be available on the
company’s investor relations website at http://ir.tyson.com and on
the Tyson IR App. The direct link for the webcast is
https://cc.talkpoint.com/barc002/090319a_js/?entity=4_80RXXR7.
About Tyson FoodsTyson Foods, Inc. (NYSE: TSN)
is one of the world’s largest food companies and a recognized
leader in protein. Founded in 1935 by John W. Tyson and grown under
three generations of family leadership, the company has a broad
portfolio of products and brands like Tyson®, Jimmy Dean®,
Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State
Fair®. Tyson Foods innovates continually to make protein more
sustainable, tailor food for everywhere it’s available and raise
the world’s expectations for how much good food can do.
Headquartered in Springdale, Arkansas, the company has 121,000 team
members. Through its Core Values, Tyson Foods strives to operate
with integrity, create value for its shareholders, customers,
communities and team members and serve as a steward of the animals,
land and environment entrusted to it. Visit www.tysonfoods.com.
Forward-Looking StatementsCertain information
in this report constitutes forward-looking statements. Such
forward-looking statements include, but are not limited to, current
views and estimates of our outlook for fiscal years 2019 and 2020,
grain derivatives, pricing pressure, commodity market volatility,
uncertainties related to a recent fire, and the timing of expected
operational improvements. These forward-looking statements are
subject to a number of factors and uncertainties that could cause
our actual results and experiences to differ materially from
anticipated results and expectations expressed in such
forward-looking statements. We wish to caution readers not to place
undue reliance on any forward-looking statements, which speak only
as of the date made. We undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
[1]Adjusted earnings per share is a non-GAAP financial measure
and is provided on a non-GAAP basis because certain information
necessary to calculate such measure on a GAAP basis is unavailable,
dependent on future events outside of the company’s control, and
cannot be predicted without unreasonable efforts by the company.
Adjusted earnings per share should not be considered a substitute
for net earnings per share attributable to Tyson or any other
measure of financial performance reported in accordance with GAAP.
Investors should rely primarily on the company’s GAAP results and
use non-GAAP financial measures only supplementally in making
investment decisions.
To download Tyson Foods’ free investor relations app, which
offers access to SEC filings, news releases, transcripts, webcasts
and presentations, please visit the App Store for iPhone and
iPad or Google Play for Android mobile devices.
Media Contact: Gary Mickelson,
479-290-6111Investor Contact: Jon Kathol,
479-290-4235Category: IR, Newsroom
Source: Tyson Foods, Inc.
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