Tyson cuts profit forecast, says slaughterhouse fire among challenges

REUTERS: U.S. meat processor Tyson Foods Inc on Tuesday lowered its 2019 adjusted earnings forecast citing short-term challenges due to commodity market volatility, slower-than-expected operational improvements in the chicken segment, and the impact of a recent fire at its slaughterhouse in Holcomb.

Tyson now expects to earn an adjusted profit between US$5.30 and US$5.70 per share, from a prior outlook of US$5.75 to US$6.10 per share.Tyson said challenges also include margin compression related to a reversal of a gain on mark-to-market grain derivatives recognized in the third quarter, and implementation of enhanced food safety initiatives.

"The discrete challenges we've encountered this quarter now lead us to believe we will fall short of our previously stated guidance," Noel White, Tyson Foods' Chief Executive Officer said. However, he added Tyson's outlook for fiscal 2020 remains positive, as it does not expect the challenges to repeat and expects more favorable market conditions.The slaughterhouse fire https://www.reuters.com/article/us-tyson-foods-fire/tyson-foods-slaughterhouse-fire-ignites-u-s-beef-prices-idUSKCN1V61WT last month led to the closure of the sprawling facility in Holcomb, Kansas, that killed about 6,000 cattle a day, or 5per cent of the total U.S. slaughter.

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