Tyson sales top $10 billion for quarter
Carroll County News
Tyson Foods Inc. — one of the world’s largest food companies and the largest employer in Carroll County — on Monday announced sales of $10.4 billion for the second quarter of the company’s fiscal 2019.
That figure was up 11.6 percent from the second quarter of 2018, when the company reported net income of $9.8 billion.
Tyson’s sales for the quarter ending March 30 were $10.4 million, up 11.6 percent from $9.8 million the previous year.
Tyson reported net income of $635 million for the quarter — up from $494 million in 2018. The company’s operating margin of 6.1 percent increased from 5.1 percent the previous year.
Tyson’s adjusted earnings per share for the second quarter were $1.20, down 6 percent from 2018.
“I’m pleased with our direction as we begin the back half of the year,” Noel White, Tyson’s president and CEO, said in a news release announcing the second-quarter financial data. “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.”
Springdale-based Tyson directly employs more than 2,600 people in Carroll County — not counting the local farmers who contract with the company. Tyson operates plants in Berryville and Green Forest — including a new Green Forest plant that began operating in 2017 after a $136 million construction effort. Tyson has an annual payroll of $138 million in Carroll County and pays $18.4 million in taxes and utilities in the county.
Tyson stocks were trading at $77.03 Monday afternoon on the New York Stock Exchange, up $1.935 for the day.