In this file:
· Meat Giant Tyson Signals Potential M&A Slowdown After Deals
· Tyson Foods Inc (TSN) Q1 2019 Earnings Conference Call Transcript
· Tyson Foods, Inc. Announces Quarterly Dividend
· Tyson Foods quarterly sales miss on lower pork sales
Meat Giant Tyson Signals Potential M&A Slowdown After Deals
Tyson to be ‘very disciplined’ on more acquisitions, CEO says
Comments come after Keystone buyout, BRF assets purchase
By Isis Almeida and Lydia Mulvany, Bloomberg
February 7, 2019
America’s largest meat processor has been on a buying spree, but momentum for further acquisitions may be slowing.
After buying chicken-nugget maker Keystone Foods for more than $2 billion last year and announcing the purchase of some of Brazil’s BRF SA’s assets for $340 million on Thursday, Tyson Foods Inc. Chief Executive Officer Noel White plans to be “very disciplined” about any future deals.
Tyson, based in Springdale, Arkansas, has been expanding into value-added products such as chicken nuggets and expanding abroad to combat lackluster markets and disappointing sales at home. The company is now ready to tap bond markets to finance the recent acquisitions, Stewart Glendinning, the chief financial officer, said Thursday on a conference call with analysts.
“We will be very disciplined in what we would take a look at next,” CEO White said on the call. “It would have to deliver strong financial return, be in a geographic area that might be attractive. But we are fully committed to integrating what we have bought, get our financing in place and then take a very structured, disciplined approach on anything else.”
After the buying spree, speculation emerged that the company may expand at home. Tyson has held talks to buy closely held U.S. meat company Foster Farms for about $2 billion, CNBC reported this week.
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Tyson Foods Inc (TSN) Q1 2019 Earnings Conference Call Transcript
TSN earnings call for the period ending December 29, 2018.
Motley Fool Transcribers
Feb 7, 2019 at 3:12PM
Tyson Foods Inc (NYSE:TSN)
Q1 2019 Earnings Conference Call
Feb. 07, 2019, 9:00 a.m. ET
Questions and Answers
Good morning, and welcome to the Tyson Foods First Quarter Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Jon Kathol, Vice President of Investor Relations. Please go ahead, sir.
Jon Kathol -- Vice President of Investor Relations
Good morning, and welcome to the Tyson Foods Incorporated Earnings Conference Call for the First Quarter of Fiscal 2019. On today's call are Noel White, President and Chief Executive Officer; and Stewart Glendinning, Chief Financial Officer. Slides accompanying today's prepared remarks are available as a supplemental report in the Resource Center of the Tyson Investor website at ir.tyson.com. Tyson Foods issued an earnings release this morning, which has been furnished to the SEC on Form 8-K, and is available on our website at ir.tyson.com.
Our remarks today include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements reflect current views with respect to future events such as Tyson's outlook for future performance on sales, margin, earnings growth and various other aspects of its business. These statements are subject to the risks and uncertainties that could cause actual results to differ materially from our expectations and projections. I encourage you to read the release issued earlier this morning and our filings with the SEC for a discussion of the risks that can affect our business.
I would like to remind everyone that this call is being recorded on Thursday, February 7th, at 9:00 A.M. Eastern Time. A replay of today's call will be available on our website approximately one hour after the conclusion of this call. This broadcast is the property of Tyson Foods, and any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Tyson Foods is strictly prohibited.
Please note that our references to earnings per share, operating income and operating margin in today's remarks are on an adjusted basis, unless otherwise noted. For reconciliations to our GAAP results, please refer to this morning's press release. Because of our annual meeting of shareholders takes place this morning, we need to limit the call to one hour, so we can get to the meeting on time. I ask that you honor the operators, one question and one follow-up instructions, and get back in the queue if you have additional questions. We want to get to as many of you as possible, so we'll be moving quickly through Q&A, while answering your questions as fully as possible.
I'll now turn the call over to Noel White.
Noel White -- President & Chief Executive Officer
Thank you, Jon, and good morning everyone. Fiscal 2019 is off to a solid start with earnings of $1.58 per share, and 8.3% operating margin. As we evolved from a protein producer to a modern food company, we're reaping the benefits of our established diversified business model. Yesterday, we reached a definitive agreement to acquire the Thai and European operations of BRF. The purchase includes four poultry processing facilities in Thailand, one in the United Kingdom, and one in the Netherlands. This deal furthers our growth strategy by expanding offerings of value-added protein in global markets.
We completed the Keystone acquisition on November 30th, and has provided us with a scalable platform in the Asian poultry market. The acquisition of the BRF facilities will help strengthen our presence in the Thai poultry industry and serve the high growth markets in that region. BRF assets in the United Kingdom and in the Netherlands give us the stronger foothold in Europe, where we are currently under-penetrated.
I'm confident in our ability to integrate the BRF operations, in part due to the pace and the level of teamwork taking place with the Keystone integration. Keystone is already playing an important role in our growth strategy, and we look forward to maximizing the opportunities, inherent in the combined business to benefit our customers as we strive to meet their needs and grow together.
As part of the integration process for Keystone, a few weeks ago, we announced several organizational changes. This refinement of our team will help us make the most of our biggest growth opportunities, which are value-added foods in the international markets. I'm glad to have everyone on board, and the team is eager and motivated to deliver results.
I'd also like to mention that Fortune magazine recently included us on the list of the World's Most Admired Companies, ranking Tyson Foods, Number One in the food production category for the third straight year. The rankings are based on key attributes that are important to us, as we execute our strategy to grow our business through differentiated capabilities, to deliver ongoing financial discipline, through continuous improvement, and to sustain our company in the world for future generations. I'm committed to our strategy and our team members are committed to deliver results based on the strategy.
Moving to our segment performance in the first quarter, in short, strong organic growth in Prepared Foods, and strong Beef fundamentals led the performance, while pork and chicken perform well, given market conditions. The dynamics across this business highlight the advantage of Tyson's diversified business model, as they work together to provide balanced and opportunity for long-term growth.
The Prepared Foods segment was a record first quarter with $268 million in operating income and a 12.5% return on sales, building on the momentum of a record year in 2018. The reported performance of Prepared Foods is a substitutor (ph) of several noncore businesses last year. When those are excluded, Prepared Foods delivered over 3% revenue growth and double-digit profit growth in the first quarter, and modest volume increases. This demonstrates the effectiveness of our branded, value-added, multi-channel Prepared Foods model.
Looking back at Prepared Foods, we've grown the business from $4 billion in sales to basically a 1% return in 2014. So business that in fiscal 2019 is projected to produce over $8 billion in sales and 11% to 12% return, and approximately $1 billion in operating income. We've grown this business organically and through M&A and operational improvements. And we are building on our strong portfolio of brands. This is best evidenced by the performance of Jimmy Dean, $1 billion brand with strong historical growth and high market share, which increased our brand investment and partnered with strategic customers to drive growth.
As a result, in the latest 52-week period, Jimmy Dean Frozen Protein Breakfast volume was up 7% and sales dollars were up nearly 8%. While we continue investing in our traditional meat protein businesses, we're also committed to incremental growth in alternative proteins. We are combining our creativity, our scale, and our resources to make great tasting protein alternatives, the more accessible for everyone, both domestically and internationally.
We will be leveraging all the resources we have at our disposal. Our insights or innovation...
Tyson Foods, Inc. Announces Quarterly Dividend
Source: Tyson Foods, Inc.
via Globe Newswire - February 07, 2019
SPRINGDALE, Ark., Feb. 07, 2019 (GLOBE NEWSWIRE) -- The Board of Directors of Tyson Foods, Inc. (NYSE: TSN), at a meeting on Feb 6, 2019, declared a quarterly dividend of $0.375 per share on Class A common stock and $0.3375 per share on Class B common stock, payable on June 14, 2019, to shareholders of record at the close of business on May 31, 2019.
About Tyson Foods
Tyson Foods, Inc. (NYSE: TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company had 122,000 team members at September 30, 2017. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.
Media Contact: Gary Mickelson, 479-290-6111
Investor Contact: Jon Kathol, 479-290-4235
Source: Tyson Foods, Inc.
Tyson Foods quarterly sales miss on lower pork sales
Karl Plume, Reuters
February 7, 2019
(Reuters) - Tyson Foods Inc reported weaker-than-expected first-quarter sales on Thursday as the largest U.S. meat processor was stung by weaker pork prices and sales volumes and lower chicken prices.
Shares of the maker of Ball Park hotdogs and Jimmy Dean sausages fell about 2 percent to $59.66.
Tyson is grappling with a drop in U.S. demand for chicken and declining prices for pork due to trade tensions between the United States and some trading partners.
Top pork importers Mexico and China have both raised tariffs on U.S. pork shipments in retaliation for higher U.S. duties on their goods, leading to a glut of meat in the United States.
Tyson has been focusing on expanding further into value-added foods like chicken nuggets, while also growing its footprint outside of the United States.
CEO Noel White said in a statement that Tyson’s pork and chicken units “performed well given market conditions,” and highlighted the company’s recent M&A growth.
“We remain focused on stabilizing volatility and growing earnings in Prepared Foods as well as our value-added and international businesses. We are facing several challenges this year. We do every year,” White said during a conference call with analysts.
Tyson’s first-quarter revenue fell 0.4 percent to $10.19 billion in the fiscal first quarter ended Dec. 29, below expectations for $10.38 billion, according to IBES data from Refinitiv.
Sales in the company’s pork business fell 8.1 percent...