Tyson reports strong third quarter results, fiscal year outlook
Tyson Foods Inc. reported third quarter sales of $9.85 billion, an increase from last year’s results of $9.403 billion. Operating income dropped to $697 million, while net income decreased to $448 million. For the first nine months of the fiscal year, Tyson’s sales of $28.1 billion are outpacing last year’s $27.7 billion, and its net income of $1.383 billion is slightly ahead of 2016’s $1.377 billion.
“Our team delivered solid results in our third quarter with three of four segments on a GAAP basis and all four segments on an adjusted basis achieving operating margins in or above their normalized ranges. Our total net sales grew 4.8% compared to third quarter of 2016, and every segment delivered volume growth behind a strong start to grilling season and new product innovation,” said Tom Hayes, president and chief executive officer of Tyson Foods.
“The Beef and Pork segments were very strong performers in the third quarter, and continued generating cash to fuel investments in our value-added Chicken and Prepared Foods businesses. Volume growth in our Core 9 retail and Focus 5 foodservice businesses again outpaced the industry as we built momentum with customers by satisfying consumer appetites for value-added protein and fresh foods.
“The team worked quickly to complete the acquisition of AdvancePierre in June, and the integration is well underway. We're collaborating as one team and finding rich opportunities for improvement in agility, revenue growth management, and innovation to accelerate the top line. The addition of AdvancePierre will further our leadership position in prepared foods as we capitalize on the fast-growing convenience store channel and the fresh retail perimeter across all day parts. Additionally, we’re seeing even greater potential for leveraging our complementary businesses for efficiency. Given the early success of our integration efforts, we now anticipate cumulative net synergies exceeding $200 million within three years.
“We're nearing the end of a record year of earnings per share and operating income, and we’re looking ahead to fiscal 2018 with great enthusiasm. We anticipate delivering another record year through differentiated capabilities, exceptionally strong brands and disciplined execution. We expect strong global demand for protein and superior focus on the fundamentals will contribute to a favorable operating environment in our Beef and Pork segments. In our Chicken segment, we will build our business through continued capacity expansion, No Antibiotics Ever and organic products, innovation and strong support of the Tyson brand. In the Prepared Foods segment, we continue to strengthen our business through improved execution in our foodservice operations, on-trend protein innovation and the integration of AdvancePierre.
“Tyson Foods is positioned to lead consumer fresh goods through our unique capabilities. We bring together fresh food production and distribution, deep culinary expertise and consumer demand generation along with #1 brands and unmatched scale. At the same time, we operate with agility and are laser focused on creating value for our shareholders. This is an exciting time at Tyson Foods as we build a powerful engine to deliver consistent, profitable growth over time,” Hayes concluded.
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Source: Tyson Foods Inc.