Tyson Foods Reports Strong Second Quarter Fiscal 2019 Results
Source Tyson Foods, Inc.
SPRINGDALE, Ark., May 06, 2019 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN), one of the world’s largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp andState Fair, today reported the following results:
First Six Months Highlights
- GAAP EPS of $2.67, down 49% from record prior year (prior year included a one-time tax benefit of $2.71)
- Adjusted EPS of $2.78, down 10% from record prior year
- GAAP operating income of $1,442 million; Adjusted operating income of $1,495 million
- Total Company GAAP operating margin of 7.0%; Adjusted operating margin of 7.2%
- Record Prepared Foods GAAP operating margin of 12.2% and record Adjusted operating margin of 12.4%
- Repurchased 2.4 million shares for $146 million
Second Quarter Highlights
- GAAP EPS of $1.17, up 38% from prior year; Adjusted EPS of $1.20, down 6% from prior year
- GAAP operating income of $635 million; Adjusted operating income of $654 million
- Total Company GAAP operating margin of 6.1%; Adjusted operating margin of 6.3%
- Record second quarter Prepared Foods GAAP operating margin and income of 12.1% and $245 million; record second quarter Adjusted operating margin and income of 12.3% and $249 million
- Record second quarter Beef GAAP and Adjusted operating income of $156 million
Guidance
- Maintaining Adjusted1 EPS guidance for fiscal 2019 of $5.75-$6.10
“I’m pleased with our direction as we begin the back half of the year,” said Noel White, Tyson’s president and CEO. “The Prepared Foods segment produced its second consecutive quarter of record return on sales. Both the Beef and Pork segments were solid performers, while the Chicken segment is poised for improvement following what we believe are its margin lows for the year.
“Looking ahead, African Swine Fever has the potential to impact the global protein industry on a level that we have never experienced, and it is an event that will underscore the power of the Tyson business model. While Tyson’s diversity across segments provides stability and puts us in a position to capitalize when opportunities arise, all proteins could see a benefit. A worldwide decrease in pork supply would offer significant upside to our pork business, while also lifting the chicken and beef businesses as substitutes and increasing raw material costs in our prepared foods business.
“Our forecasts for the current fiscal year do not include any potential effects from ASF as we do not have clarity on when the impact might occur or what the magnitude could be. To date, pork pricing hasn’t kept pace with increased hog costs, leading us to believe any positive ASF impact would occur in late fiscal 2019 into fiscal 2020 and beyond. For these reasons, we are maintaining our guidance for fiscal 2019 in the range of $5.75-6.10 adjusted earnings per share, and we will stay focused on the long-term by growing our business on the strength of our leading brands and our diversified business model.”
