Tyson Foods, Inc. today reported the following results:
- Record second quarter operating income up 27 percent to $704 million compared to Q2'15 adjusted results
- Record second quarter total company operating margin of 7.7 percent
- Record second quarter Chicken segment operating margin at 12.7 percent
- Record second quarter Pork segment operating margin at 11.8 percent
- Prepared Foods segment operating margin at 10.9 percent
- Captured $144 million in total synergies; $67 million incremental synergies over Q2'15
- Repurchased 6.9 million shares for $400 million, excluding shares repurchased to offset dilution from our equity compensation plan
“Our business continues to perform very well, delivering record second quarter operating income and return on sales, in what is typically the most challenging quarter of our fiscal year,” Donnie Smith, president and chief executive officer of Tyson Foods, said. “Sales are growing in key retail product lines. The pricing and marketing investments we’ve made are paying off in increased volumes in strategic products including Hillshire Farm smoked sausage and lunchmeat, Jimmy Dean breakfast sausage and Ball Park hot dogs.
“With a focus on the longer term, we have a three-year pipeline of innovation across all segments with exciting new product launches to keep our offerings in the retail, food service and international channels relevant to consumers.
“We’ve differentiated our chicken business by being more consumer driven, upgrading our mix, diversifying our pricing mechanisms, improving our cost structure, implementing our ‘Buy vs. Grow’ strategy and providing industry-leading quality and customer service. Because of the actions we’ve taken, and because those actions have proven to produce higher, more stable margins, we’re raising the annual normalized margin range for the Chicken segment to 9 to 11 percent.
“Solid performances by all of our segments provided strong cash flows, of which we used $400 million to repurchase 6.9 million shares during the quarter. We captured $144 million in synergies, with $67 million incremental to fiscal second quarter 2015.
“We’re in a great position, and we’re generating momentum that will take us into 2017 and beyond. We’ve produced record results in the first half of the fiscal year, and we expect continued strong performance in the second half. To reflect what we’ve accomplished and to demonstrate our confidence, we’re raising adjusted earnings guidance for fiscal 2016 to $4.20-4.30 per share.”
Source: Tyson Foods, Inc.