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Tyson Foods Reports Q2 for Fiscal 2017

Tyson Foods Reports Q2 for Fiscal 2017

Monday, May 8th, 2017

Tyson Foods announced record breaking results during the first half of the company’s fiscal year

Tom Hayes, President and CEO, Tyson Foods“We generated record adjusted EPS in the first half of the fiscal year,” said Tom Hayes, President and Chief Executive Officer, in a company press release. “Despite seasonal challenges typical of our second quarter and one-time events, adjusted earnings per share was up 17% over the first half of fiscal 2016.”

The company noted the following highlights from the first six months of fiscal 2017:

  • GAAP EPS of $2.51; Record Adjusted EPS of $2.60, up 17% from last year
  • GAAP Operating income of $1,553 million; Record Adjusted operating income up 8% to $1,605 million

“We are experiencing continued strong volume and share growth in our retail Core 9 product lines, which are some of our most profitable businesses,” explained Hayes. “The Core 9 growth illustrates that we get results when we focus our efforts on doing what we do best–innovating, understanding what motivates consumers, building brands, and helping our customers grow their businesses.”

Tyson Foods World Headquarters

The company also noted, in its financial release, the following highlights from its second quarter:

  • GAAP EPS of $0.92; Adjusted EPS of $1.01 compared to $1.07 last year
  • GAAP Operating income of $571 million; Adjusted operating income of $623 million
  • Total company GAAP operating margin at 6.3%; Adjusted operating margin at 6.9%
  • Captured $173 million in total synergies; $29 million incremental synergies over Q2'16
  • Repurchased 2.1 million shares for $133 million, excluding shares repurchased to offset dilution from our equity compensation plan

“Our beef and pork segments generated tremendous operating income in the second quarter, allowing us to invest in the long-term growth of our value-added businesses, continued Hayes. “Our prepared foods segment results were negatively affected by the on-going challenges in our pizza toppings and ingredients meats businesses discussed last quarter. We expect our results to improve as we continue to address operational efficiency and capacity through fiscal year 2018. Unfortunately, we experienced fires in two chicken plants in our second quarter. Had it not been for the fires, our chicken segment return on sales would have been within its normalized range.”

The company noted, too, that it plans to continue pursuing an agenda of growth targeting protein-based foods.

“We are concentrating on growing our protein-packed brands as demonstrated by our announcements two weeks ago of our intended merger with AdvancePierre Foods and the expected sale of some non-protein businesses. We plan to grow Tyson Foods and fuel that growth with next generation manufacturing capabilities focused on fresh and convenient foods that consumers demand across both retail and foodservice channels,” Hayes added. “We’re half way to another strong year of financial performance at Tyson, and we reiterate our adjusted earnings guidance of $4.90-5.05 per share, which would be approximately 12% growth over the prior year.”

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Tyson Foods