Brazil's BRF rules out additional asset sales -CEO

 

Reporting by Alberto Alerigi; writing by Ana Mano; editing by Jason Neely, Reuters

February 7, 2019

 

SAO PAULO, Feb 7 (Reuters) - Brazilian food processor BRF SA will not pursue additional asset sales after falling short of reaching a target of 5 billion reais ($1.34 billion) from divestitures and other initiatives to raise cash, management said on Thursday.

 

After announcing the sale of units in Europe and Thailand to Tyson Foods Inc. for $340 million, the company said asset sales...

 

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https://www.reuters.com/article/brf-outlook/brazils-brf-rules-out-additional-asset-sales-ceo-idUSE6N1X401L

 

 

Tyson Sales Miss Estimates as It Looks to BRF Deal to Expand

 

    Company is battling depressed prices amid supply boom

    U.S. meatpacker plans to buy six BRF plants for $340 million

 

By Lydia Mulvany and Isis Almeida, Bloomberg 

February 7, 2019

 

Tyson Foods Inc., the biggest U.S. meat processor, reported sales that missed analyst estimates on the same day the company said it would expand its global footprint by buying poultry plants in Asia and Europe.

 

The companyís pork sales volumes and prices decreased in the first quarter, according to a statement Thursday on earnings. While chicken volumes rose after acquisitions, sales prices still fell. Shares dropped in pre-market trading.

 

The meat giant has been battling lackluster market conditions for some time as a boom in American meat production has dragged prices lower. Tariffs from key trading partners, including China, further added to the glut amid pressure on U.S. exports. To combat the volatility, the company has pushed to expand its global presence while also focusing on offering more value-added products, like chicken nuggets. Earlier Thursday, Tyson said it is purchasing six facilities from Brazilís BRF SA for $340 million, including operations in Asia and the U.K.

 

Tysonís stock was down 2.1 percent to $59.60 as of 8:54 a.m. in New York.

 

Commodity companies have struggled to boost profits as changing tastes and a fast-paced lifestyle mean consumers prefer specialty items and easy-to-cook meals. Thatís pushed Tyson and its rivals to focus on products such as pre-cut meat. In 2017 and 2018, Tyson spent more than $7 billion on takeovers, including a $2.5 billion deal to buy chicken-nugget maker Keystone Foods.

 

Earlier this week, CNBC reported Tyson held talks to buy closely held meat company Foster Farms for...

 

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https://www.bloomberg.com/news/articles/2019-02-07/tyson-foods-profit-tops-estimates-on-boost-from-beef-demand