Tyson Foods, Inc. - TSN - Isin US9024941034

[nobody]

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide.

It operates through four segments: Beef, Pork, Chicken, and Prepared Foods.

The company processes live fed cattle and live market hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products, including breaded chicken strips, nuggets, patties, and other ready-to-fix or fully cooked chicken parts; and supplies poultry breeding stock.

It also manufactures and markets frozen and refrigerated food products, including ready-to-eat sandwiches, flame-grilled hamburgers, Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks, and processed meats under the Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells, and Gallo Salame brands.

In addition, the company offers its products under the Tyson and ibp brands.

It sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies, and domestic distributors who serve restaurants and food service operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors, as well as through independent brokers and trading companies.

The company was founded in 1935 and is headquartered in Springdale, Arkansas.

[nobody]

Tyson Foods to invest US$20M in expansion of Tennessee facility, names Wes Morriss president of Poultry

USA – Tyson Foods, the world’s second-largest processor and marketer of meat, based in Arkansas America, announced plans to invest more than US$20 million in the expansion of its Tennessee facility.

The money is intended to be used in the construction of a wellness centre, an independent roadway for transporting livestock to the facility and the expansion of the facility’s production capacity.

The final two phases of the project are underway and the operations are expected to be complete by early 2023.

The initial phase of the project was started in April and constituted a 21,000 square feet expansion of an existing barn facility to a total of 60,625 square feet.

The expanded space provides a 20% increase in capacity at the facility which employs more than 600 workers.

With more capacity added, the facility will be better equipped to continue meeting the increased demand for their popular Jimmy Dean, Hillshire Farm and other category-leading products.

“I’m thrilled to celebrate our investment in our Newbern Prepared Foods plant with our hard-working, dedicated team members,” said Stan Welch, plant manager at Tyson Foods.

This is the third major investment by Tyson Foods in Tennessee in under three years. In 2020, the company completed an expansion of its poultry processing plant in Union City, Tenn., which included adding 40,000 square feet of space.

Then in 2021, it opened a new US$425 million, 370,000-square-foot complex in Humboldt, Tennessee that comprises of a processing plant, feed mill and hatchery.

Wes Morris takes charge of poultry business

The investment in Tennessee follows Wes Morris’ appointment as president of the company’s poultry business, to succeed David Bray, effective since January 27th.

Morris first joined Tyson Foods in 1999 and has since worked in multiple positions in the company such as group vice president for consumer products and president of prepared foods operations.

“Wes is a recognized leader who will help position us for continued success and the future growth of our chicken segment,” said Donnie King, Tyson Foods President and CEO.

Wes Morris aims to strengthen the company’s strategy of executing its mission of feeding the world with excellency and agility.

https://www.foodbusinessafrica.com/tyso ... f-poultry/

[nobody]

Tyson Foods (TSN) Queued for Q1 Earnings: Things to Note

Tyson Foods, Inc. TSN is likely to witness year-over-year growth in the top line when it reports first-quarter fiscal 2023 earnings on Feb 6. The Zacks Consensus Estimate for revenues is pegged at $13,102 million, suggesting an increase of 1.3% from the prior-year quarter’s reported figure.

However, Tyson Foods’ quarterly bottom line is likely to decline year over year. The Zacks Consensus Estimate for quarterly earnings has moved down by a couple of cents to $1.44 per share over the past 30 days. The projection indicates a slump of 49.8% from the figure reported in the prior-year quarter. Tyson Foods has a trailing four-quarter earnings surprise of 18.4%, on average. This renowned meat products company delivered a negative earnings surprise of 4.1% in the last reported quarter.

Things To Note

Tyson Foods is benefiting from its focus on operational and supply chain efficiency programs. Solid customer and consumer demand for its brands and products amid rising protein consumption have been working in TSN’s favor. Strength in the company’s omnichannel capabilities has also been contributing to the upside. Tyson Foods is seeing continued growth in the retail core business and greater demand in the foodservice business. We believe that the continuation of these aspects bodes well for the quarter to be reported.

However, Tyson Foods has been battling rising cost inflation for a while, which is marring its margin performance. In this regard, escalated cost of goods throughout the business, including feed ingredients, labor, live animals and freight costs, is a concern. Tyson Foods’ international presence keeps it exposed to unfavorable currency fluctuations. The persistence of such hurdles might have hurt Tyson Foods’ performance in the first quarter of fiscal 2023.

https://uk.finance.yahoo.com/news/tyson ... 03086.html

[Frazier]

Tyson Foods dook vorig kwartaal onder analistenlat

Tyson Foods dook vorig kwartaal onder de analistenlat, niet enkel omdat de winst teleurstelde, maar ook omdat de verwachtingen voor de bedrijfsmarges dit jaar verlaagd werd. De kwartaalomzet steeg met 2,5% tot 13,26 miljard, terwijl de aangepaste winst van 85 cent per aandeel ver onder de verhoopte 1,34 dollar uitkwam. Oorzaak is de dalende rundvleesprijs (gemiddeld -8,5%) en de afnemende vraag naar varkensvlees, omdat de inflatie de prijzen erg duur maakte. De operationele marges krompen tot 3,5% tegenover 19,1% een jaar eerder. De operationele marges in de kippensector zullen dalen van 6% à 8% naar 2% à 4%, ondanks dat de prijzen vorig kwartaal met 7,1% stegen.

[nobody]

Tyson Foods First Quarter 2023 Earnings: Misses Expectations

Tyson Foods (NYSE:TSN) First Quarter 2023 Results:

Key Financial Results

Revenue: US$13.3b (up 2.5% from 1Q 2022).

Net income: US$316.0m (down 72% from 1Q 2022).

Profit margin: 2.4% (down from 8.7% in 1Q 2022). The decrease in margin was driven by higher expenses.

EPS: US$0.89 (down from US$3.10 in 1Q 2022).

Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 36%.

Looking ahead, revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 2.8% growth forecast for the Food industry in the US.

Performance of the American Food industry.

The company's shares are down 5.7% from a week ago.

https://uk.finance.yahoo.com/news/tyson ... 02984.html

[nobody]

Meat producers to will not have the liquidity and the profitability needed for further investment in 2023, S&P Global report highlights

USA – The meat industry is headed for uncertain times with players recording lower margins due to factors such as the recent drought and high operating costs, highlights the S&P Global report.

Last year’s drought heavily impacted the entire meat production value chain as it led to a scarcity of feed, which made grazing difficult, which in turn resulted in tight supplies of meat.

The S&P report highlights that with regard to the impact this drought had on meat processing companies, it is very likely that beef producers, such as JBS, will record lower margins into 2024 based on low meat supply.

The report also cites the United States Department of Agriculture (USDA) projection that cattle production will decline by 7.5% in 2023.

The industry has consequently also been plagued by high operating costs which are expected to lead to a rough year for the players in the sector.

Poultry processors like Tyson Foods and Pilgrim’s Pride are projected to be pressured by high feed costs and limited cold storage inventories which will likely lower their profit margins.

These factors that are hindering profitability for processors and producers are anticipated to limit companies’ investment capacities and drive cautious decisions throughout 2023.

Chris Johnson, S&P Global Ratings Credit Analyst, said: “As this industry is facing harder times, we do expect them to be even more prudent and cautious around what their capital spending is going to be because they’re not going to have the liquidity and the profitability to generate higher levels of cash flow for further investment.”

Meat giant Tyson Foods’ most recent quarterly earnings were reported to have missed their expectations, signalling that the company found it difficult to navigate the supply and demand dynamics.

“The way it played out in the second half of the calendar year is that there was more beef out in the market while there was also a growing supply of chicken,” he said.

“All of a sudden both were racing to the bottom of the line in terms of pricing that really hurt the processing margins for both meat.”

According to Johnson, when one protein gets more expensive than another, consumers opt for the less expensive option.

This did work in the company’s favour this time around with an excess supply of beef more than offsetting any extra profits that they could have obtained from chicken.

However, according to the report, their expanded product portfolio might help cushion the negative impact of an economic downturn.

https://www.foodbusinessafrica.com/meat ... ighlights/

[nobody]

Meat giant Tyson Foods closes deal to acquire Williams Sausage Company

USA – Tyson Foods, the world’s second-largest processor and marketer of chicken, beef and pork, is set to expand its presence in Tennessee with the acquisition of Williams Sausage Company.

The William Sausage company was founded in 1958 and produces cooked sausages, bacon, and sandwiches for the retail and food service markets.

According to the terms of the deal, the William Sausage employees who number about 500 are set to continue working at the facility with no planned job cuts from the acquisition.

The financial terms were not disclosed by either party and the transaction is still subject to approval by U.S. regulators.

Stewart Glendinning, group president, of prepared foods for Tyson Foods, said: “The addition of Williams Sausage Company aligns with our strategic intent of expanding our capacity to serve our customers.

In 2017 they opened a second facility in Union City, Tennessee, an investment that cost US$37M, creating about 226 job opportunities in the 5 year period that it has been operational.

“There are not many companies to which we could entrust what we have built, and we are very pleased that in Tyson Foods we have found that partner who understands the heritage and culture of our family business and will be able to take it to the next level,” said Williams Sausage President and CEO.

“We believe this to be a very positive move for our family and our team members that will ensure the future of all stakeholders.”

The deal comes shortly after Tyson Foods announced a Q1 68% slump in operating profit in the three months to 31 December.

Tyson also recently expanded its own Tennessee facility into which it invested more than US$20 million.

This money was used for the construction of a wellness centre, an independent roadway for transporting livestock to the facility and the expansion of the facility’s production capacity.

The expanded space provided a 20% increase in production capacity at the facility which currently employs more than 600 workers.

With more capacity added, the facility is now better equipped to continue meeting the increased demand for Tyson’s Foods’popular Jimmy Dean, Hillshire Farm and other category-leading products.

https://www.foodbusinessafrica.com/meat ... e-company/

[nobody]

Tyson Foods to shut two US chicken plants with nearly 1,700 workers

CHICAGO, March 14 (Reuters) - Tyson Foods Inc will close two U.S. chicken plants with almost 1,700 employees on May 12, the company said on Tuesday.

The closures show the biggest U.S. meat company by sales is still trying to figure out how to improve its chicken business that has struggled for years.

Tyson will shut a plant in Glen Allen, Virginia, with 692 employees and a plant in Van Buren, Arkansas, with 969 employees, according to a statement.

Chicken demand will shift to other plants as part of a strategy to utilize the full capacity at each of its facilities, the company said.

"The current scale and inability to economically improve operations has led to the difficult decision to close the facilities," Tyson said.

Arkansas-based Tyson said last year it could not fulfill all its orders for chicken due to limited supplies and labor, and planned to boost production. The company previously bought chicken from other producers to meet demand.

Tyson wrongly predicted last year that demand for chicken would be strong at supermarkets in November and December, Chief Executive Donnie King said on a quarterly earnings call last month. In January, the company replaced the president of its poultry business.

Shuttering plants is difficult but justified as Tyson seeks to improve performance, said Arun Sundaram, senior equity analyst at CFRA Research. He said he was not surprised by the decision and expects Tyson may implement further restructuring.

"There's been a lot of investor pressure to management about improving the chicken margins," Sundaram said.

Tyson shares were slightly lower in afternoon trading.

Overall sales missed analyst estimates for the quarter ending Dec. 31, when total operating margins dropped to 3.5% from 11.3% a year earlier. The company at the time said the current quarter would be weaker than the end of 2022.

"They're desperate," said Magaly Licolli, director of Venceremos, an organization that advocates for poultry workers in Arkansas. "They're trying to save money and cutting workers and making other workers do more."

Tyson had about 124,000 U.S. employees as of Oct. 1, including 118,000 workers at non-corporate sites like meat plants, regulatory filings show. In October, the company said it would relocate all corporate employees to its headquarters in Springdale, Arkansas.

The United Food and Commercial Workers Local 400 union, which represents employees at Tyson's plant in Virginia, slammed the decision to close the facility.

"These men and women risked their lives and the safety of their families to keep this plant operational during the pandemic, and this is the thanks they get?" said Mark Federici, UFCW Local 400 president.

Tyson said workers losing their jobs could apply for positions at other company facilities.

(Reporting by Tom Polansek in Chicago. Additional reporting by Ananya Mariam Rajesh in Bengaluru Editing by Marguerita Choy)

https://finance.yahoo.com/news/1-tyson- ... 24160.html

[nobody]

Tyson Foods plant closure raises antitrust concerns among US farmers, experts

(Reuters) -Tyson Foods Inc gave its chicken suppliers two months' notice of its plan to shut a Virginia processing plant in May, raising concerns among farmers and legal experts about the company's compliance with antitrust regulations requiring it to give 90 days' notice before ending a contract.

The planned closure of the plant has left dozens of Virginia chicken growers scrambling to find new buyers in a region with few other options. It could also expose Tyson to fines under the century-old Packers and Stockyards Act (PSA), the U.S. antitrust law requiring the minimum advance warning, according to Peter Carstensen, a professor of law emeritus at the University of Wisconsin-Madison Law School who previously served in the antitrust division at the U.S. Department of Justice.

Tyson told Reuters the company is not canceling any farmers' contracts and instead has committed to paying the growers for the full-term of their remaining contracts, keeping in compliance with federal regulations.

Antitrust issues, particularly in meatpacking, have been a priority for the U.S. Department of Agriculture (USDA) under President Joe Biden, who in 2021 directed federal agencies to tackle consolidation. Four companies, including Tyson, control 55% to 85% of the beef, pork, and chicken markets.

Tyson alerted Virginia farmers by phone on March 13 and later by mail that it will shut its Glen Allen plant on May 12, according to three poultry farmers who supply the plant. The company said there are 55 farmers with 73 contracts who supply the plant with chickens raised for meat.

Tyson owns chickens it slaughters and pays the farmers to raise them. The company hatches baby birds and trucks them to farmers. The farmers then raise the birds for about six weeks, until they reach the size to be slaughtered and are trucked to the processing plant.

Tyson spokesperson Alicia Buffer confirmed farmers received notice last week of the May 12 closing, and said Tyson intends to stop supplying them with chicks after March 28.

She said that instead of canceling their contracts, Tyson is offering farmers a voluntary buyout package, or the option to retain them and be paid through their duration.

The three farmers interviewed by Reuters have between three and 10 years left on their contracts.

Farmers told Reuters they felt pressure to accept the buyout option because they were not sure how the contract could remain in force after the plant is shut and the chicks stop coming.

Roger Reynolds, a farmer in Crewe, Virginia, said retaining his July 2012 contract with Tyson is not a viable option, in part because it would prevent him from selling to another poultry company if one entered the region.

Another farmer with a contract to supply the plant, who asked not to be named, said they may eventually have to sell their third-generation farm as the buyout offer would not cover long-term expenses like property taxes.

Carstensen, of the University of Wisconsin-Madison Law School, said it was unclear if Tyson's approach would absolve it of its requirement to provide farmers 90 days' notice before ending a purchase contract, because closing the plant means it won't be processing chickens there anymore.

PSA violations can carry a $29,270 fine, according to the USDA website, and Carstensen said fines could apply for each contract.

The USDA, which enforces the PSA, told Reuters it is "closely monitoring" Tyson's planned plant closure.

'WE'RE DONE'

Under normal circumstances, Tyson supplies farmers with chicks, while farmers assume the costs of land and chicken houses.

Documents reviewed by Reuters show the company's proposed buyout package offers payment to farmers based on their average payment per flock in 2022.

They also show that farmers opting to retain existing contracts instead of accepting the buyout would have to meet Tyson's contractual requirements for their facilities even after the company stops providing chicks.

Tyson said those growers would have to perform "routine and preventive maintenance" to meet contract requirements and called the options generous.

Farmers must choose between the options by the end of March, according to the document.

On Monday, about 20 Tyson farmers and local government officials gathered in a fire station in Burkeville, Virginia, and raised concerns about Tyson's short timeline for closure of the plant, attendees said.

Taylor Lee, a farmer in DeWitt, Virginia, who attended the meeting, said he built two new chicken houses in 2017 and raised about 400,000 birds annually for Tyson, and is unclear what will happen to his investment.

"When we're done growing chickens (for Tyson), we're done, unless somebody else steps in," Lee said.

The nearest chicken plants to Glen Allen are 100 to 150 miles away, outside the ideal radius of 60 miles, said Hobey Bauhan, Virginia Poultry Federation president. Longer distances hike transportation costs and health risks to chickens.

(Reporting by Leah Douglas in Washington and Tom Polansek in Chicago; editing by Richard Valdmanis and Nick Zieminski)

https://finance.yahoo.com/news/tyson-fo ... 52484.html

[The Last Post]

Tyson Foods heeft in het eerste kwartaal onverwacht verlies geleden en verwacht dat de productie van rund-, varkens- en kippenvlees dit jaar niet rendabel zal zijn. Dat bleek maandag bij de kwartaalcijfers van de Amerikaanse vleesproducent.

Het operationeel resultaat was 49 miljoen dollar negatief, of netto een verlies van 0,28 dollar per aandeel, tegen 1,16 miljoen dollar winst een jaar eerder, of 2,28 dollar winst per aandeel.