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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Tyson Foods Reports on Q1 of FY 2019

02/07/2019

In a press release dated February 7th Tyson Foods Inc. (TSN) announced results for the 1st Quarter of Fiscal 2019 ending December 29th 2018.

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)

1st Quarter Ending.

Dec. 29th 2018

Dec. 30th 2017

Difference (%)

Sales:

$10,193,000

$10,299,000

-1.0

Gross profit:

$1,355,000

$1,443,000

-6.1

Operating income:

$807,000

$902,000

-12.5

Pre-tax Income

Net Income

$713,000

$552,000

$842,000

$1,631,000

-15.3

-66.2

Diluted earnings per share:

$1.39

$4.40

-68.5

Gross Margin (%)

13.3

14.0

-5.0

Operating Margin (%)

7.9

8.9

-11.2

Profit Margin (%)

5.4

15.9

-66.0

Long-term Debt:

$8,075,000

$7,962,000

+1.4

12 Months Trailing:

     

Return on Assets (%)

     

Return on Equity (%)

     

Operating Margin (%)

     

Profit Margin (%)

     

Total Assets

$32,335,000

$29,109,000

+11.1

Market Capitalization

$22,000,000

   

52-Week Range in Share Price: $49.77 to $77.62

Market Close 6th Feb $60.90. Open 7th Feb. post-release $60.31

Forward P/E: 9.7 Beta ).2

Operating income for the four segments for Q1 2019 and Q1 2018 (with margin in parentheses) were:

Chicken: $160 million (5.1%) $272million (9.1%)

Beef: $305 million (7.8%) $256 million (6.6%)

Pork: $95 million (8.1%) $151 million (11.8%)

Prepared Food: $265 million (12.2%) $256 million (11.2%)

In commenting on results Noel White, president and chief executive officer. said "our diversified business model continues to set Tyson Foods apart," He added "the Prepared Foods and Beef segments delivered strong results in our fiscal first quarter, while the Pork and Chicken segments performed well given market conditions. We're proud of the growth Prepared Foods has achieved in the past five years and the role it has played in stabilizing volatility while growing earnings. Moving forward, we will remain focused on growing Prepared Foods as well as our value-added and international businesses.

In relation to the $2.1 billion acquisition of Keystone Foods, White noted "In the first quarter, we completed the acquisition of Keystone Foods. I'm pleased with the progress of the integration and remain confident Keystone will play an important role as we execute our growth strategy, particularly with strategic customers and in key international markets.

Commenting on the future and confirming guidance White opined "Fiscal 2019 holds many opportunities for Tyson Foods. Global protein demand remains strong, and we are well positioned to meet the demand with our diversified business model and differentiated portfolio. Our cash flow and strong balance sheet support our capital commitments and our growth strategy. Our team is focused on the success of our stakeholders, and I am confident in our ability to deliver on our fiscal 2019 outlook of $5.75-6.10 adjusted earnings per share while enabling long-term, sustainable growth."


 
Copyright 2018 Simon M. Shane