In this file:
· Tyson Foods to Cut 500 Jobs
· Tyson Foods sells U.S. pork to China, but misses quarterly sales expectations
· Tyson Foods to Lay Off 500 Workers After Sales Miss
· Tyson Foods approves director slate, talks sustainability at annual meeting
Tyson Foods to Cut 500 Jobs
By Pan Demetrakakes, Food Processing
Feb 06, 2020
Tyson Foods had sales below analyst expectations and will cut 500 jobs, mostly corporate positions, according to its quarterly report.
In a filing with the U.S. Securities and Exchange Commission, Tyson reported sales of $10.82 billion for the last quarter of 2019. While this is a 6% increase over the previous year, it was about 2% less than analyst’s expectations, as reported by CNBC. Net income was $557 million, a 1.6% increase over 2018’s last quarter.
The SEC filing included a restructuring charge of $44 million for severances and other costs associated with anticipated job cuts.
“As part of the 2020 Program, we estimate the elimination of approximately 500 positions across several areas and job levels, with most of the eliminated positions originating from the corporate offices in Springdale, Arkansas and Chicago,” the report stated.
Tyson is struggling to...
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Tyson Foods sells U.S. pork to China, but misses quarterly sales expectations
Tom Polansek, Reuters
Feb 6, 2020
CHICAGO (Reuters) - Tyson Foods Inc (TSN.N) is shipping meat to China and has additional orders on the books as a fatal pig disease has created a pork shortage there, the company said on Thursday as it reported lower-than-expected quarterly sales.
Shares fell 3% and hit their lowest in more than three months as Tyson also said it would eliminate 500 jobs as part of a restructuring.
Tyson is competing with other global companies to supply meat to China, the world’s largest pork consumer, as an outbreak of African swine fever has decimated the Chinese herd.
Separately, an outbreak of coronavirus in people has seen cities quarantined in China, disrupted shipments at ports and raised uncertainty about demand among traders. However, buying interest has still been strong, Tyson Chief Executive Noel White told analysts on a conference call.
Tyson is also selling pork to other countries that have seen their typical supply chains disrupted by China’s increased buying, he said.
“We’re filling additional orders to China and we’ve seen year-over-year increases of nearly 600% in the first quarter,” White said.
Beijing imposed retaliatory tariffs on U.S. pork in 2018 amid a prolonged trade dispute between the two countries.
U.S. exports to China and Hong Kong still reached 110,876 tonnes in December, more than quadruple the volume a year earlier, according to industry figures.
China said it would halve additional tariffs levied against U.S. goods last year, following the signing of a Phase 1 deal in January that brought a truce to the bruising trade war.
“If tariffs are lifted or reduced we would likely see an acceleration of already increased global demand for pork, beef and chicken,” White said.
Net income attributable to Tyson rose...
Tyson Foods to Lay Off 500 Workers After Sales Miss
Sales miss, margins slip, and capital spending is expensive -- so workers get skewered.
Rich Smith, The Motley Fool
Feb 6, 2020
Meats-producer Tyson Foods (NYSE:TSN) reported adjusted first quarter 2020 earnings per share of $1.66 this morning, and Q1 sales of $10.8 billion. Noel White, Tyson Foods' CEO, noted that these "overall results in the first quarter of fiscal 2020 were in line with expectations," and said he is "optimistic about fiscal 2020" as a whole .
And yet, Tyson is laying off 500 workers. Why?
One easy explanation is the fact that -- however the CEO feels about his company's quarter -- Wall Street isn't especially pleased about it. Sales of $10.8 billion, which produces such well-known brands as Jimmy Dean and Hillshire Farm in addition to its own namesake Tyson, were up 6.1% in comparison with Q1 2019, but Wall Street analysts had hoped Tyson would report even better growth -- and more than $11 billion in sales.
At the same time, Tyson's earnings may have beaten estimates -- but they were nothing to write home about. Net income for the company rose a bare 1.3% year over year to $1.52 per share. And even the number that Tyson (and Wall Street) emphasized, "adjusted net income per share attributable to Tyson" (a very non-GAAP number), grew barely 5.1% -- slower than revenue growth, and indicative of weakening profit margins at the meat-maker.
Tyson is also continuing to spend heavily on capital investment this year, with capital expenditures expected to be...
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Tyson Foods approves director slate, talks sustainability at annual meeting
by Kim Souza, Talk Business & Politics
Feb 6, 2020
Tyson Foods Chairman John Tyson said he has fond memories of spending time on Emma Ave., in his hometown of Springdale, where his grandfather John W. Tyson and his father Don Tyson had a simple culture of taking care of people that dates back more than 80 years.
From those beginnings, Tyson Foods has grown into a multinational food company with 144,000 employees and revenue of $42.405 billion last year, according to the chairman who called the annual shareholder meeting to order in downtown Springdale on Thursday morning (Feb. 6). The meeting was held after the company posted fiscal first-quarter earnings.
It’s the third year the company has held the annual meeting downtown in its new offices located near where Tyson Foods originated. That space now represents the future of Tyson Foods with the new robotics and technology automation center as well as the space where Tyson Foods’ growing technology division is housed.
The business meeting was brief and sparsely attended outside of a few protesters posted across the street, Tyson employees and board members. With a quorum, shareholders elected the slate of directors to another one-year term with 84% of the votes. Tyson did not break out the votes for directors individually.
The slate of directors elected of this year are John Tyson, chairman; Gaurdie Banister; Dean Banks, president of Tyson Foods; former Arkansas Gov. Mike Beebe; Mikel Durham; Jonathan Mariner; Kevin McNamara; Cheryl Miller; Jeff Schomburger; Robert Thurber; Barbara Tyson and Noel White, CEO of Tyson Foods.
Shareholders also voted to approve compensation for officers with 91% of the vote as well as ratified the appointment of Ernst & Young as the company’s certified accounting firm.
The board heard from three shareholder groups who read proposals at the annual meeting. All three were rejected. A proposal for more transparency...