Tyson Foods, Inc. (NYSE: TSN) sank in Tuesday trading on a strong sheet of numbers for its third quarter.
The Springdale, Arkansas-based Tyson, 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 and State Fair, today reported the following results:
Sales came in at $9.999 million, compared to $10.145 million in the year-ago quarter. Net income was $537 million, compared to $395 million in the prior-year quarter.
According to CEO Noel White, "Tyson Foods produced solid earnings in fiscal 2018, demonstrating the strength of our differentiated portfolio and diversified business model. We exceeded our revised guidance due to a strong finish in the fourth quarter in the Beef and Pork segments. Prepared Foods drove margin expansion, while the Chicken segment closed the gap from earlier in the year with increased promotional activity.
In June, Tyson acquired and consolidated AdvancePierre Foods Holdings, Inc., and in fiscal 2018, it acquired Original Philly Holdings, Inc. The results from operations of these businesses are included in the Prepared Foods and Chicken segments. In fiscal 2018, Tyson acquired Tecumseh Poultry, LLC and American Proteins, Inc. The results from operations of these businesses are included in its Chicken segment.
For fiscal 2019, USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase approximately 3% from fiscal 2018 levels, but Tyson expects domestic availability of protein to increase approximately 2% as export markets should absorb a portion of the increase in production.
Tyson shares forfeited $3.52, or 5.7%, to $58.09 Tuesday.
