In this file:
· Over 10,000 Tyson Employees Reportedly Test Positive For Covid
· Tyson Foods adopts weekly coronavirus testing for workers
· Income and revenue likely lower for Tyson Foods in third quarter report
Alexandra Sternlicht, Forbes
Jul 30, 2020
Over 10,000 Tyson Foods meat processing employees have contracted Covid-19 since the pandemic began, according to a study by the Food & Environment Reporting Network, which was released today as the company announced it would implement weekly Covid-19 testing at a number of plants.
o At least 49,369 U.S. meatpacking, food processing and farmworkers have contracted Covid-19 since March, 10,104 of whom were meatpackers at Tyson foods, according to a July 30 report by the FERN.
o Also July 30, Tyson Foods announced they would hire a chief medical officer, 200 nurses and implement weekly Covid-19 testing for employees at 140 meat production factories.
o Second quarter revenue dropped 15% for the meat giant whose brands include Jimmy Dean, Hillshire Farm and Sara Lee.
o “While the protective measures we’ve implemented in our facilities are working well, we remain vigilant about keeping our team members safe and are always evaluating ways to do more,” Donnie King, Tyson Foods group president and chief administrative officer said in the announcement.
o Other meatpacking companies JBS and Smithfield Foods have 2,000-plus workers who have tested positive for Covid-19.
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Tyson Foods adopts weekly coronavirus testing for workers
The company behind Tyson, Jimmy Dean and Hillshire Farm will launch the protocol at all 140 of its U.S. production facilities.
By Hannah Denham and Abha Bhattarai, The Washington Post
July 30, 2020
Tyson Foods is launching weekly on-site coronavirus testing for employees at all 140 of its U.S. production facilities, making it one of the first major American employers to commit to such regular and expansive testing of its workforce.
The food conglomerate behind Tyson, Jimmy Dean and Hillshire Farm has grappled with outbreaks of the novel coronavirus at its meat-processing plants that have sickened thousands of workers and led to supply chain slowdowns. Company spokesman Gary Mickelson said the strategy is being piloted at three work sites but declined to say which locations.
With face masks, temperature checks and hand-sanitizer dispensers now common in American workplaces, systematic testing shows the lengths to which companies may go to ensure the safety of their workers — and ultimately their customers — as U.S. coronavirus infections surge past 4.4 million. Tyson’s announcement Thursday also illustrates that the nation’s piecemeal response to the pandemic has forced businesses to take a more proactive approach to a public health crisis that has resulted in a recession.
In May, Walmart executives said the retail giant was exploring administering coronavirus and antibody tests for its 1.5 million U.S. workers. Kroger, the nation’s largest grocery chain, offers free home testing kits to employees with symptoms of covid-19, the illness caused by the novel coronavirus. Amazon, which is building its own testing lab, has piloted a program to test warehouse workers and says it will spend $1 billion on employee testing this year. The company also has assembled a team of scientists, engineers and other specialists to oversee the testing of front-line employees. (Jeff Bezos, the founder and chief executive of Amazon, owns The Washington Post.)
“There is a lot of uncertainty in the world right now, and the best investment we can make is in the safety and well-being of our hundreds of thousands of employees,” Bezos said in a news release in April...
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Income and revenue likely lower for Tyson Foods in third quarter report
by Kim Souza, Talk Business & Politics (AR)
Jul 30, 2020
Tyson Foods is expected to report leaner third-quarter net income and revenue amid challenging poultry fundamentals, ongoing pressures from COVID-19 and its impact on meatpacking plants and weak demand from restaurants.
The Springdale-based meat giant’s third-quarter results will be reported ahead of the market opening on Monday (Aug. 3). Wall Street analysts expect Tyson Foods to report net earnings of 78 cents per share, down 88% from the $1.47 per share earned a year ago. Net income should total about $242.8 million, according to the consensus.
Ben Bienvenu, an analyst with Stephens Inc., recently raised adjusted earnings per share to $1.45 and reiterated a neutral overall rating with a price target of $60. Stephens had previously estimated earnings of 67 cents per share but raised the prediction based on strong beef margins during the quarter.
Stephens said the biggest challenge in analyzing earnings this period is determining how much of the record commodity margin will be offset by poor fixed-cost absorption at the plants. Bienvenu said the loss of foodservice demand – primarily restaurants – resulted in low chicken pricing and although margins began to improve in the quarter, they still remain well below the year-ago levels.
“We have lowered our pork estimate in light of incremental costs associated with COVID-19, and weak fixed cost absorption on significant volume declines, which we estimate to be 20% during the period. While pork margins showed strength during the quarter, the pork industry was the most impacted by COVID-19 related disruptions among the U.S. protein industry as many facilities were forced to operate below optimal capacity levels. Supplies remain burdensome in the near and intermediate-term and likely support segment margins for the balance of the year; however, the latest hogs and pigs reports indicated that live hog supplies may trend lower in 2021,” Bienvenu noted in a recent investor report.
The smaller pork segment is expected to report gross profits of $24.3 million, down from $42 million in the same period last year. Tyson’s beef segment is the shining star for the quarter. Stephens said it raised the third quarter beef estimate to reflect very strong margins.
“As foodservice demand fell the demand for cattle from slaughterhouses fell, which caused the price of cattle to drop significantly; however, at the same time the demand for beef at retail rose in light of strong food-at-home consumption trends,” Bienvenu stated.
He said while the beef industry faced disruptions related to the pandemic, the extent of the disruptions were not as significant as the pork industry, and “we estimate Tyson only saw volume declines of 5% during the period.”Bienvenu noted there are ample supplies of cattle in the near to intermediate-term as the pandemic has led to congested feedlots due to a back up in slaughter...