2 years Tyson Foods Misses Q2 Earnings Forecast, Says Coronavirus Will Continue to Affect Meat, Chicken and Pork Sales     

Tyson said the “lower levels of productivity and higher costs of production we have experienced will likely continue in the short term until the effects of COVID-19 diminish”.

Tyson Foods Inc.  (TSN) – Get Report posted weaker-than-expected second quarter earnings Monday and warned that lower productivity, as well as higher costs, would continue to hit the bottom line of the world’s second-biggest chicken, beef and pork producer. 

Tyson said GAAP earnings for the three months ending on March 28, its fiscal second quarter, were pegged at $1.00 per share, down 16.6% from the same period last year and 4 cents shy of the Street consensus forecast. Total company sales, Tyson said, rose 4.3% to $10.89 billion, just shy of analysts’ forecasts of a $10.96 billion tally. 

“During the quarter, we witnessed an unprecedented shift in demand from foodservice to retail, temporary plant closures, reduced team member attendance, and supply chain volatility as a result of the virus,” said CEO Noel White. “Despite these challenges, we were able to adjust our product mix and redirect products to the appropriate channels.”

“While we cannot anticipate how long the challenges presented by COVID-19 will persist, we remain focused on driving long-term growth,” he added. “Our solid balance sheet, ample liquidity, scale and diversity continue to give us confidence in our long-term outlook.”

Tyson shares were marked 7% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $55.78 each. 

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