- Food
- Tuesday, 12 Nov 2019
Tyson Foods earnings miss forecasts as slaughterhouse fire hurts beef sales
Tyson grappled with the fire as the global meat industry focused on increasing sales China, where an outbreak of a fatal pig disease has slashed pork production. U.S. producers have been hampered due to tariffs imposed by Beijing as part of the countries’ trade war.
The fire at the Holcomb, Kansas, slaughterhouse in August left restaurants, food service companies and grocery chains scrambling to buy beef from other facilities.
As a result, volumes in Tyson’s business fell 4.2% in the fourth quarter to Sept. 28, with sales down 1.3%. The fire also resulted in $31 million of net incremental costs, the company said.
Still, profit margins for U.S. beef processors set record highs after the fire as beef prices climbed. At the same time, cattle prices tanked because the fire temporarily eliminated a key buyer of livestock, prompting a U.S. government investigation into the market. Tyson’s operating margins for beef were 9.7%, up from 8.9% a year earlier. Margins declined in its pork, chicken and prepared foods units.
Excluding items, the company earned $1.21 per share, compared with the average analyst estimate of $1.29, according to IBES data from Refinitiv.
Related Industry Updates
BDF Natural Ingredients Participated In the Largest Exhibition for Dairy and Meat Industries Expo Carnes
Aug 30, 2019
McDonald’s Corp Dismissed Chief Executive -Steve Easterbrook
Nov 04, 2019
Plant Based Protein Supplement Market Growth Opportunities, Top Key Players, Industry Outlook and Forecasts 2027
Apr 27, 2021
High Demand for North America Food Service Packaging Market Research Reports Results in Business Market Insights Launching Subscription Plans | Berry North America, Inc., Dow Industries Inc, DS Smith PLC, Genpak LLC, Huhtamäki Oyj
Sep 17, 2020
South America Bacon Market Report Analysis During 2020-2027 Along With Key Players Like OSI Group, JBS S.A, Farmland Industries, Inc., Applegate Farms, LLC, Foster Farms Inc
Dec 11, 2020
Nestle CEO not getting carried away by strong first-quarter sales growth
Apr 24, 2020
Acidity Regulators Market research report with leading business players- Archer Daniels Midland Co., Brenntag AG, Cargill Incorporated, Chemelco International, Corbion N.V., FBC Industries Inc., Fuerst Day Lawson, Innophos Holding Inc., Kerry Group, Tate and Lyle plc and Others
Dec 03, 2020
Follow us on
