|
4th Quarter Ending
|
October 3rd 2020
|
September 28th 2019
|
Difference (%)
|
|
Sales:
|
$11,460,000
|
$10,884,000
|
+5.3
|
|
Gross profit:
|
$1,610,000
|
$1,139,000
|
+41.3
|
|
Operating income:
|
$1,012,000
|
$604,000
|
+67.6
|
|
Pre-tax Income
Net Income
|
$887,000
$692,000
|
$446,000
$369,000
|
+98.9
+87.5
|
|
Diluted earnings per share:
|
$1.90
|
$1.01
|
+88.1
|
|
Gross Margin (%)
|
14.1
|
10.5
|
+86.6
|
|
Operating Margin (%)
|
8.8
|
5.6
|
+57.1
|
|
Profit Margin (%)
|
6.0
|
3.4
|
+76.4
|
|
Long-term Debt:
|
$12,519,000
|
$11,002,000
|
+13.8
|
|
12 Months Trailing:
|
|
Return on Assets (%)
|
5.9
|
|
Return on Equity (%)
|
12.5
|
|
Operating Margin (%)
|
7.5
|
|
Profit Margin (%)
|
4.3
|
|
Total Assets
|
$34,741,000
|
$33,097,000
|
+5.0
|
|
Market Capitalization
|
$23,511,000
|
For the 4th quarter segment revenue and operating contribution were:-
Beef $ 4,272 million; $516 million
Pork $1,368 million; $174 million
Chicken $3,433 million; $86 million
Prepared Foods $2,277 million; $249 million
International $ 491 million; $(13) million
The Chicken Segment represented 29.9 percent of Q4 Company revenue but contributed 8.3 percent of operating contribution.
For FY 2020 TSN posted net earnings of $2,140 million on revenue of $431,850 million with an EPS of $5.86. Corresponding values for FY 2019 were net earnings of $2,020 million on revenue of $424,050 million with an EPS of $5.52.
52-Week Range in TSN Share Price: $42.57 to $94.24 50-day Moving average $58.84
Market Close November 13th $62.30. At noon November 16th post-release $64.54
Forward P/E 10.4 Beta 0.7
In commenting on results Dean Banks, President & CEO of Tyson Foods stated, “our business performed well and delivered strong fourth quarter and full-year results,” He added, “our team members, agricultural partners, and customers have shown resilience. This has enabled us to maintain and accelerate our efforts to provide global consumers with a safe and accessible food supply.”
Banks continued “While we will continue to face pandemic-related challenges in fiscal 2021, we’re settling the business down to be focused on executing our long-term strategy while generating strong returns for shareholders. I’m excited for the opportunities ahead for this great company, and am certain we have the people, products, and strategies in place to drive future growth.”
In reporting on the Chicken Segment, the Company stated:-
“Sales volume increased 1.9%, (or decreased 5.4% after removing the impact of an additional week), for the fourth quarter of fiscal 2020, and increased slightly, (or decreased 1.7% after removing the impact of an additional week), for fiscal 2020 primarily due to lower production throughput associated with the impact of COVID-19 during portions of fiscal 2020 and lower foodservice demand, partially offset by increased retail demand. Average sales price decreased primarily due to weaker chicken pricing as a result of market conditions.
Operating income decreased primarily from market conditions, unfavorable product mix, as well as production inefficiencies and direct incremental expenses related to COVID-19. Operating income was further impacted by $34 million and $21 million in restructuring costs incurred in fiscal 2020 and fiscal 2019, respectively. Operating income was affected by approximately $45 million of net derivative gains in the fourth quarter of fiscal 2020 and approximately $70 million of net losses in the fourth quarter of 2019, in addition to approximately $50 million of decreased feed ingredient costs in the fourth quarter of fiscal 2020 as compared to the fourth quarter of fiscal 2019. For fiscal 2020, net derivative results and feed ingredient costs were relatively flat as compared to fiscal 2019”.
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