Tyson Foods earnings rebound in Q3; international exec exits
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Photo: Worth Sparkman
Tyson Foods, Inc., beat Wall Street expectations for its third quarter, as meat sales recovered and lower grain prices reduced feed costs in its chicken segment.
State of play: The company reported third-quarter net income of $191 million for fiscal 2024, up from a loss of $417 million in the same quarter a year ago.
- The profit came on revenue of $13.3 billion, up from $13.1 billion a year ago.
- Tyson's beef segment continues to struggle because ranchers are not rebuilding herds that were cut in recent years due to drought and feed costs. Tyson projected it will lose $300 million to $400 million on beef in fiscal 2024.
- But a better outlook for chicken meant it upped its operating income forecast for fiscal 2024 to $1.6 billion-$1.8 billion.
Flashback: Earnings have floundered in recent years for the nation's largest meatpacker. Tyson has responded with corporate job cuts, along with the closure or sale of at least nine of its plant locations since the beginning of 2023, following office consolidations in 2022.
- First-quarter earnings in February were a bright spot.
Meanwhile, in a call Monday with investors, CEO Donnie King announced the retirement of Amy Tu, president of Tyson's international division.
- Tu was general counsel for the company during the early days of the COVID-19 pandemic, when Tyson's legal department allegedly drafted a proposed executive order invoking the Defense Production Act to keep meatpacking plants operating.
- A version of the executive order was later signed by President Trump.
Devin Cole, president of the company's McDonald's business unit, will lead the international business, King said.
What we're watching: The company did not address the suspension of John Randal Tyson, great-grandson of the company's founder, from his role as CFO after his arrest on suspicion of driving while intoxicated.
- Company spokespeople did not respond to requests for additional information.
Disclosure: Reporter Worth Sparkman formerly worked at Tyson Foods.