Daily Journal masthead

Labor disputes at ports, avian flue and rising costs associated with beef pummel Tyson in 3Q

bug
Share/Save/Bookmark

NEW YORK — Tyson Foods' third-quarter-profit leapt 32 percent, but that was still short of expectations and the company cut its outlook with high cattle costs expected to continue to weigh on revenue growth.

"Unless beef market conditions improve rapidly, we will not achieve our previous guidance," CEO Donnie Smith said Monday.

Tyson is also being hammered on exports with bans in some countries following a U.S. outbreak avian influenza, as well as a strong dollar.

Company shares slid 9 percent in early trading.

Net income for the quarter reached $343 million, or 83 cents per share. Earnings, adjusted for non-recurring gains, came to 80 cents per share.

That was 15 cents shy of what industry analysts had expected, according to a poll by Zacks Investment Research.

Revenue rose 4 percent to $10.07 billion and sales volume for the prepared foods unit climbed, thanks in part to the acquisition of Hillshire Brands last August.

But, the beef business overshadowed those numbers.

Smith said beef "under-delivered our expectations by $84 million," in a conference call Monday. There was also an excess of beef on the market, forcing sales at lower prices, and a labor dispute at West Coast ports also disrupted business, Smith said.

The Springdale, Arizona, company warned that the conditions would make it difficult to meet prior full-year guidance of $3.30 to $3.40 per share. The company cut its outlook to between $3.10 and $3.20 per share.

Shares of Tyson Foods Inc., which have risen 11 percent since the beginning of the year, fell $3.60 to $40.75.

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TSN at http://www.zacks.com/ap/TSN

_____

Keywords: Tyson Foods, Earnings Report

Think your friends should see this? Share it with them!

Story copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


We also have more stories about:
(click the phrases to see a list)

Category:

Follow Daily Journal:

All content copyright ©2015 Daily Journal, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.