In this file:
· Tyson plant is Columbus Junction resumes production Wednesday
· Motley Fool: Tyson has proved it can weather setbacks
Tyson plant is Columbus Junction resumes production Wednesday
David Hotle, Muscatine Journal (IA)
Jan 6, 2021
COLUMBUS JUNCTION — On Wednesday the Tyson Fresh Meats pork plant in Columbus Junction resumed limited production after being shut down on Dec. 15, 2020.
According to Liz Croston, spokesperson for parent company Tyson foods, the plant will resume its workload slowly to ensure the safety of its workers. The plant had been closed down after a mechanical malfunction shut down the plant’s refrigeration system. It was reported the malfunction caused a considerable amount of smoke, which led to the plant calling the Columbus Junction Fire Department to the scene as a precaution. After the incident Tyson officials announced the plant would be “idling production” while repairs were being made.
“You can’t just flip a switch and bring it back on line,” Croston said. “Member safety is always first and foremost for us. We will start getting people back. It is important that we take it slow and do it safely.”
The refrigeration system is used to store finished meats until they are shipped out. Croston said harvesting began Wednesday and processing will begin on Thursday...
Motley Fool: Tyson has proved it can weather setbacks
Plus: Both fixed and equity funds aim to deliver, sticking with employer’s stock and this week’s trivia.
By The Motley Fool
via The Dallas Morning News - Jan 6, 2021
The Fool’s Take
Tyson Foods has certainly felt the impact of COVID-19, which has hurt production.
The company has been facing headwinds such as supply struggles, pricing pressures amid weak restaurant sales and rising demand for meat substitutes. While recent results suggest that Tyson is dealing effectively with the issue and its operations are running more smoothly, rising COVID-19 cases may prove to be another setback.
The stock was recently down more than 30% from its 52-week high — presenting a buying opportunity. Tyson is one of the biggest processors and sellers of beef, pork and chicken, with brands such as Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, IBP and State Fair.
Even in a bad economy, demand for its products remains stable. Despite ongoing issues, Tyson’s results showed an improvement in its fiscal fourth quarter, with adjusted sales down by only 2% year over year as the virus continued to affect production. — and operating profit jumping by 40% despite higher COVID-19-related expenses. Showing confidence in its future, Tyson’s board of directors recently raised its quarterly dividend by 6%, and the stock yielded over 2.7%.
No one wants to see widespread shutdowns, but that’s a possibility. with cases rising. Regardless, Long-term Tyson investors can collect dividends while waiting for better times...