Tyson Foods has slashed its annual operating income and revenue growth forecasts as a historic disruption in the US beef market continues to weigh on the company. On September 3rd, the firm reduced operating income guidance to $1.85 billion to $2.05 billion from an earlier $2.1 billion to $2.3 billion, and cut revenue growth guidance to 1.5% to 2.0% from 2.5% to 3.5%. The company's third-quarter results, released in early August, showed flat revenue with beef sales falling 3.9% annually, and beef accounts for 38.9% of Tyson's revenue, making it the largest segment. Tyson has closed a major beef plant in Nebraska and plans to either shut down or sell three more beef packaging sites and plants. CNBC host Jim Cramer said on September 18th that the worst is not over for Tyson, comparing its outlook to the darkness of Iceland. On the positive side, all non-beef segments grew in the third quarter, with chicken up 0.83%, prepared foods up 1.70%, pork up 4.90% and International up 7.80%, and management said 75% of the chicken business's income is now tied to committed customer contracts.
Tyson Foods IncTyson slashed its annual operating income and revenue growth guidance as beef market woes deepen.
