SPRINGDALE, ARK. —Tyson Foods, Inc., reduced its fiscal 2018 earnings outlook from $6.55 to $6.77 per share to a range of $5.70 to $6 per share before the market opened on July 30. Uncertainty in global trade policies and increased volatility in the commodity markets were cited as the primary reasons.
“The combination of changing global trade policies here and abroad, and the uncertainty of any resolution, have created a challenging market environment of increased volatility, lower prices and oversupply of protein,” said Thomas P. Hayes, president and chief executive officer. “We will continue to watch these conditions carefully.”
Specifically, Mr. Hayes said Tyson Foods is facing greater pressure on domestic chicken sales volume and pricing due to an abundance of low-priced beef and pork on the market. Increases in freight and feed ingredient costs are also weighing on performance.
“We are working to mitigate these pressures, but our fourth quarter is off to a slower than expected start driven primarily by market related factors,” he said. “We expect the supply-demand imbalance to equilibrate, and we remain confident in our ability to grow our company and create long-term shareholder value. Our management team has a strong grasp of both the short and long-term challenges and is actively driving the business to overcome them.”
Tyson Foods is scheduled to issue its financial results for the third quarter of fiscal 2018 on Aug. 6.