The most important meat producer within the US warned of a tricky few months forward as points corresponding to softer demand for beef and better prices, which brought about it to overlook first-quarter revenue expectations, proceed to linger.
Tyson Meals on Monday maintained its full yr income outlook however reduce steering for its working margins in beef, pork and rooster.
“We noticed market swings throughout all enterprise, and so they have been unpredictable and sizeable,” chief government Donnie King stated of the primary quarter. “That is the primary time I noticed all markets work towards us on the similar time”, he instructed analysts on an earnings name.
Chief monetary officer John Tyson stated the second quarter could be “seasonally softer” than the primary three months of the yr, however a restoration was anticipated within the second half.
Beef section gross sales fell 6 per cent from a yr in the past, and the typical value dropped 8.5 per cent, due to a decline in demand for beef merchandise within the US. King additionally stated there was a rise of about $530mn in dwell cattle prices.
Tyson additionally produced an excessive amount of recent rooster, which it finally needed to low cost to maintain up with demand. Nonetheless, gross sales within the rooster section elevated 10 per cent for the quarter with value growing 7.1 per cent.
General, income rose 2.5 per cent from a yr in the past to $13.26bn within the first quarter however missed Wall Road estimates for $13.52bn.
The Arkansas-based firm earned 88 cents per share within the three months to the top of December, which was under market estimates of $1.40 a share and much under final yr’s first-quarter revenue of $3.07 a share.
Tyson shares fell 4.3 per cent in mid-morning buying and selling on Monday.
The most important meat producer within the US warned of a tricky few months forward as points corresponding to softer demand for beef and better prices, which brought about it to overlook first-quarter revenue expectations, proceed to linger.
Tyson Meals on Monday maintained its full yr income outlook however reduce steering for its working margins in beef, pork and rooster.
“We noticed market swings throughout all enterprise, and so they have been unpredictable and sizeable,” chief government Donnie King stated of the primary quarter. “That is the primary time I noticed all markets work towards us on the similar time”, he instructed analysts on an earnings name.
Chief monetary officer John Tyson stated the second quarter could be “seasonally softer” than the primary three months of the yr, however a restoration was anticipated within the second half.
Beef section gross sales fell 6 per cent from a yr in the past, and the typical value dropped 8.5 per cent, due to a decline in demand for beef merchandise within the US. King additionally stated there was a rise of about $530mn in dwell cattle prices.
Tyson additionally produced an excessive amount of recent rooster, which it finally needed to low cost to maintain up with demand. Nonetheless, gross sales within the rooster section elevated 10 per cent for the quarter with value growing 7.1 per cent.
General, income rose 2.5 per cent from a yr in the past to $13.26bn within the first quarter however missed Wall Road estimates for $13.52bn.
The Arkansas-based firm earned 88 cents per share within the three months to the top of December, which was under market estimates of $1.40 a share and much under final yr’s first-quarter revenue of $3.07 a share.
Tyson shares fell 4.3 per cent in mid-morning buying and selling on Monday.
