Corporate Profiles - 2024 - 104

COMPANY overview
Tyson Foods, Inc.
Restructuring Chicken business improves
results while Beef struggles
he Chicken business unit at Tyson Foods,
Inc., Springdale, Ark., returned to profitability
in 2024, but the Beef unit struggled
due to fewer cattle.
The Chicken turnaround was a tale of two
third quarters. The unit had an operating loss
of $314 million in the 2023 third quarter. In
August 2023, Tyson announced plans to close
four poultry plants in North Little Rock, Ark.;
Cordyon, Ind.; and Dexter and Noel, Mo.
The restructuring found success as the
T
Chicken unit in this year's fiscal 2024 third
quarter, ended June 29, had operating income
of $244 million.
" Chicken had one of its best quarters in some
time, but we are clearly benefiting from better
beef and pork segment and chief supply officer,
addressed the beef supply issue Sept. 5 at the
Barclays Global Consumer Staples Conference.
" We're looking at the same data that everyone
else is as well, and so really a slow recovery
to date, and we're not seeing anything meaningful, "
he said. " But when I talk about setting
the stage, I think it's important to understand a
few different points. First and foremost, better
pasture conditions in the last couple of years
that's helping provide at least an opportunity
to retain some heifers. "
He added Tyson Foods will keep focusing on
interest rates and may see some reprieve from
those rates through the economic decisions of
ranchers.
In the Prepared Foods unit, Tyson Foods in
January opened a new 400,000-square-foot
$355 million food production facility in Bowling
Green, Ky. The plant is expected to produce
2 million lbs a week of Jimmy Dean and
Wright branded bacon. Bacon represents over
$1 billion in sales across retail and foodservice
at Tyson Foods. Prepared Foods had operating
income of $676 million over the first nine
months.
In the Pork unit, an operating loss of $24
Chief executive officer -
Donnie King
market conditions, including lower grain costs, "
said Donnie King, president and chief executive
officer, in an Aug. 5 earnings call. " Our actions
and focus on the fundamentals across all aspects
of the value chain are also contributing to
these strong results. "
Tyson planned to cut jobs at its Wilkesboro,
NC, poultry processing plant and shift production
to support Tyson fully cooked products.
Tyson's Beef unit through the first nine
months of the fiscal year had an operating loss
of $310 million, which compared to operating
income of $232 million in the same time of the
previous year. Brady Stewart, president of the
104 \ October 2024
million over the nine-month period was an improvement
from an operating loss of $128 million
in the same time of the previous year. Tyson
closed a pork processing plant in Perry, Iowa.
" I think it's important to note that we've
made some network design changes recently
with our Perry, Iowa, plant closure that was
a very difficult decision for us but ultimately
closed at the end of June to really get our network
right, " Stewart said in September. " And so,
it gives us better capacity utilization and efficiencies
in our existing assets. We feel good
about the way our assets are running today. "
In personnel moves in August, Devin Cole
became president of Tyson's international business
segment, succeeding the retiring Amy Tu,
and Curt Calaway was named chief financial officer,
succeeding John R. Tyson, who was put on
health-related leave. CP
2021
$47,049
Source: Tyson Foods, Inc.
Tyson Foods, Inc.
net sales
(fiscal years ended in September)
in millions
2023
2022
$52,881
$53,282
Tyson Foods, Inc.
net income (loss)
(fiscal years ended in September)
in millions
2023
2022
2021
Source: Tyson Foods, Inc.
($648)
$3,238
$3,047
$40
$49
$58
$67
$76
Tyson Foods, Inc.
share price
HIGH =
Sept. 4, 2024 = $65.72
LOW =
Oct. 23, 2023 = $43.58
Sept. Nov.
2023
Jan.
2024
Source: New York Stock Exchange
TYSON FOODS, INC.
Sept. 4, 2024 = $65.72
March May
July
Sept.
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Corporate Profiles - 2024

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