Business: Tyson Foods had a record year

Tyson Foods had a record year

Tyson Foods

USA, Springdale, Ark. The acquisition of Hillshire Brands in 2014 had a dramatic impact on Tyson Food’s earnings during fiscal 2015, ended 3 October. Despite such hurdles as the West coast port slowdown that disrupted beef and pork exports, an outbreak of avian influenza that limited poultry exports and an unprecedented decline in live cattle futures, the company generated record results.

For fiscal 2015, Tyson Foods earned $1,220 mill., equal to $3.06 per share on the common stock, and an increase when compared with the previous year when the company earned $864 mill., or $2.48 per share. Sales for the year totaled $41,373 mill., compared with sales of $37,580 mill. during fiscal 2014.

Tyson’s chicken business had a strong year, generating $1.3 bn. in operating income, according to the company. Breaking down Tyson’s chicken business, Donnie Smith, president and chief executive officer of Tyson Foods, said 52% of sales are in retail, 17% are in value-added food service sales, 16% are to food service national accounts, and 15% are such commodity products as leg quarters.

Operating income for Tyson’s newly revamped prepared foods business was $636 mill. and volume was up 78% compared to the previous year. During the year, the company’s pork business unit generated an operating income of $373 mill., and the beef business recorded an operating loss of $53 mill.

During fiscal 2016, Mr. Smith said Tyson Foods will be extending the Jimmy Dean brand into the bacon category and positioning the product as a premium option.

For the fourth quarter, Tyson’s net income was $258 mill., or 65c per share, and an increase compared with the previous year when net income totaled $137 mill., or 37c per share. Sales for the quarter were $10,506 mill. compared with sales of $10,105 mill. the previous year.


Source: Tyson Foods