Tyson Foods Suffered a Loss In 2Q As a Result Of Charges

(CTN News) – As a result of heavy charges related to plant closures and restructuring, Tyson Foods posted a loss in its second quarter, its first quarterly loss since 2009.

It also cut its sales forecast for the second quarter as its performance was impacted by hefty charges related to plant closures and restructuring.

The company’s shares fell more than 9% before the market opened on Monday morning, according to reports.

A loss of $97 million for the three months ending April 1, 2014 has been reported by Jimmy Dean Tyson Foods, Inc. located in Springdale, Arkansas, the home of Jimmy Dean, Hillshire Farm, Ball Park and other trademarked brands, for the three months ended April 1, 2014.

The company had earned $829 million, or $2.28 per share, compared to the same period last year when it had earned $826 million, or $2.26 per share.

The company has reported a net loss of 4 cents per share, excluding the costs related to the closure of plants and the reorganization of the company.

In spite of Wall Street’s predictions, the performance of the company came as a surprise, with analysts polled by Zacks Investment Research predicting a profit per share of 81 cents.

There was basically no change in revenue from $13.13 billion to $13.13 billion. There was a $13.6 billion estimate from Wall Street, which is below what actually happened.

It is true that the current protein market is challenging, but we have a strong growth strategy in place, and from a long-term perspective, we are optimistic about the future,” said Donnie King, president and CEO of Tyson Foods in a statement.

It was a very good year for our branded Tyson Foods business. We continue to be laser-focused on meeting our customers’ needs and collaborating with them to plan for their future.”

As of now, Tyson Foods Inc. expects to generate revenues of $53 billion to $54 billion for its fiscal year 2023. As of its previous forecast, the company was expecting revenues between $55 billion and $57 billion.

In the survey of Tyson Foods analysts conducted by FactSet, $55.19 billion is expected to be generated by the company as its revenue in the next fiscal year.

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