|
In a press release dated February 6th Tyson Foods Inc. (TSN) announced results for the 1st Quarter of Fiscal 2020 ending December 28 th. 2020.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)
|
Noel White |
|
1st Quarter Ending
|
Dec. 28th 2019
|
Dec. 29th 2018
|
Difference (%)
|
|
Sales:
|
$10,815,000
|
$10,193,000
|
+5.8
|
|
Gross profit:
|
$1,440,000
|
$1,355,000
|
+6.3
|
|
Operating income:
|
$826,000
|
$807,000
|
+2.3
|
|
Pre-tax Income
Net Income
|
$725,000
$561,000
|
$713,000
$552,000
|
+1.6
+1.6
|
|
Diluted earnings per share:
|
$1.52
|
$1.51
|
+0.7
|
|
Gross Margin (%)
|
13.3
|
13.1
|
-1.5
|
|
Operating Margin (%)
|
7.6
|
7.9
|
-3.8
|
|
Profit Margin (%)
|
5.2
|
5.4
|
-3.7
|
|
Long-term Debt:
|
$2,369,000
|
$2,356,000
|
+0.6
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
5.5
|
|
|
|
Return on Equity (%)
|
14.7
|
|
|
|
Operating Margin (%)
|
6.8
|
|
|
|
Profit Margin (%)
|
4.7
|
|
|
|
Total Assets
|
$33,811,000
|
$33,097,000
|
+2.2
|
|
Market Capitalization
|
$27,802,000
|
|
|
52-Week Range in Share Price: $ 58.49 to $94.24
Market Close Wed. Feb. 5th $84.14. Close Thu. Feb. 6 th post-release $79.77
Forward P/E 11.0 Beta 0.4 Peg Ratio 1.15
Capital expenditure Q1 FY 2019, $312 million.
In commenting on results Noel White, CEO stated "our overall results in the first quarter of fiscal 2020 were in line with expectations," He added "our Beef and Pork segments performed well as the effects of African swine fever are beginning to materialize. Our Chicken segment performed better operationally, although in a soft pricing environment. Our Prepared Foods segment produced its sixth consecutive quarter of retail consumption growth, demonstrating the strength of our brands and innovation as we grew or held market share in all core categories.
He concluded "with improved access to global markets resulting from recent trade developments, there are reasons to be optimistic about fiscal 2020 and beyond and we are well-positioned to capitalize on opportunities in the global marketplace. Although we anticipate the challenges and volatility typical in our second fiscal quarter, our long-term outlook remains positive."
The quarterly report addressed performance in the chicken Segment. Sales increased primarily due to incremental volume from a business acquisition, partially offset by lower volume from our rendering and blending business. Average sales price increased due to lower rendering and blending sales, which carry a lower average sales price, largely offset by broadly weaker chicken pricing as a result of market conditions. Operating income decreased primarily from challenging pricing conditions. Additionally, operating income in the first quarter of fiscal 2020 was impacted by $21 million in restructuring costs.
It is evident from the table below that the Chicken Segment was a disproportionate contributor to operating profit. Chicken represented 30.4 percent of Q1 sales but 6.9 percent of operating income.
SEGMENT RESULTS (in millions)
|
Sales
|
|
(for the first quarter ended December 28, 2019, and December 29, 2018)
|
| |
First Quarter
|
| |
|
|
Volume
|
Avg. Price
|
| |
2020
|
2019
|
Change
|
Change
|
|
Beef
|
$
|
3,838
|
|
$
|
3,926
|
|
(8.0
|
)%
|
5.8
|
%
|
|
Pork
|
1,379
|
|
1,179
|
|
7.3
|
%
|
9.7
|
%
|
|
Chicken
|
3,292
|
|
3,115
|
|
4.5
|
%
|
1.2
|
%
|
|
Prepared Foods
|
2,140
|
|
2,149
|
|
(3.1
|
)%
|
2.7
|
%
|
|
International/Other
|
498
|
|
143
|
|
220.2
|
%
|
27.2
|
%
|
|
Intersegment Sales
|
(332)
|
)
|
(319
|
)
|
n/a
|
|
n/a
|
|
|
Total
|
$
|
10,815
|
|
$
|
10,193
|
|
4.7
|
%
|
1.4
|
%
|
|
Operating Income (Loss)
|
|
(for the first quarter ended December 28, 2019, and December 29, 2018)
|
| |
First Quarter
|
| |
|
|
Operating Margin
|
| |
2020
|
2019
|
2020
|
2019
|
|
Beef
|
$
|
410
|
|
$
|
305
|
|
10.7
|
%
|
7.8
|
%
|
|
Pork
|
191
|
|
95
|
|
13.9
|
%
|
8.1
|
%
|
|
Chicken
|
57
|
|
160
|
|
1.7
|
%
|
5.1
|
%
|
|
Prepared Foods
|
158
|
|
265
|
|
7.4
|
%
|
12.3
|
%
|
|
International/Other
|
10
|
|
(18
|
)
|
n/a
|
|
n/a
|
|
|
Total
|
$
|
826
|
|
$
|
807
|
|
7.6
|
%
|
7.9
|
%
|