Tyson Foods, Inc. (NYSE: TSN) raised its outlook for fiscal 2017 and announced plans to cut around 450 jobs.
The Arkansas-based food giant announced Thursday increased adjusted guidance for fiscal 2017, adjusted guidance for fiscal 2018 and cost savings targets for 2018-2020.
Tyson’s news release also reported adjusted earnings guidance for the 2017 fiscal year, which ends Saturday, has been increased to an adjusted $5.20-5.30 per share, up from $4.95-5.05, primarily due to much better than expected earnings in the Beef segment.
Guidance for fiscal 2018 is an adjusted $5.70-5.85 earnings per share, which would be the seventh consecutive year of record adjusted EPS.
Tyson CEO Tom Hayes said the company is implementing its previously announced “Financial Fitness” plans. “We are creating momentum behind our continuous improvement agenda as we know we can be even more efficient operators,” he said.
“We are a good partner for growth for our customers and are constantly challenging ourselves to identify opportunities to create value for our consumers, customers and shareowners.”
The release also made reference to plans by Tyson to "reduce headcount" by approximately 450 positions across several areas and job levels. Most of the eliminated positions will come from the corporate offices in Springdale, Chicago and Cincinnati.
In its fiscal fourth quarter earnings report, Tyson Foods plans to report restructuring and other charges of approximately $140 - $150 million.
The changes announced Thursday found their way into the company’s stock price on Friday, which rocketed $5.15, or 7.9%, to $70.60, within a 52-week trading range of $55.72 to $76.38.
