Posted on 08/07/2023 9:07:57 AM PDT by EBH
— Tyson Foods Inc. is closing four chicken processing plants as it looks to lower costs.
The company said Monday that the plants being closed are located in North Little Rock, Arkansas; Corydon, Indiana; Dexter, Missouri and Noel, Missouri.
Tyson said that it will shift production to other facilities and halt operations at the four plants in the first two quarters of fiscal 2024. The company currently estimates having $300 million to $400 million in total charges, based on a preliminary analysis.
Tyson launched a plan in fiscal 2022 where it targeted $1 billion in productivity savings by the end of fiscal 2024. The company said that it realized more than $700 million of savings in fiscal 2022, which partially offset the impacts of inflationary market conditions. Tyson topped its $1 billion target in the second quarter of fiscal 2023, more than a year ahead of its plan.
In May Tyson posted a surprise loss in its second quarter and cut its sales forecast due to the cost of plant closures and layoffs.
Tyson has been trying to cut costs over the past several months. It closed its corporate offices in Chicago and South Dakota late last year and consolidated its workforce in Arkansas. In March it announced the closure of two plants in Arkansas and Virginia in order to better use available capacity at other facilities.
Tyson laid off 15% of its senior leadership and 10% of its corporate workers in April as it faces steep inflation on labor, grain and other inputs.
The company also reported its fiscal third-quarter financial results on Monday. Tyson posted a loss of $417 million, or $1.18 per share, for the period ended July 1. A year earlier it earned $750 million, or $2.07 per share.
The current quarter included a goodwill impairment charge of $448 million.
Removing asset impairment charges and restructuring costs, the Springdale, Arkansas-based company earned 15 cents per share. That's well below the 34 cents per share analysts polled by Zacks Investment Research expected.
Revenue totaled $13.14 billion, down from $13.5 billion a year ago.
Tyson still anticipates fiscal 2023 revenue in a range of $53 billion to $54 billion. Analysts surveyed by FactSet expect revenue of $53.74 billion.
Shares dropped 8% before the market open.
I do find it confusing if people are moving to lower priced meats ..like chicken...where or why is Tyson really doing this?
Have you researched the history of this company? Major player in America’s demise. Corruption to the core.
ROTFL. Oh man....
Not extensively. I seem to recall they employed many ‘undocumented workers’
I always credited Tyson with keeping Clintoon Inc. in business.
My extended family that used to be in the chicken business (for eggs and meat) said that corporate regulations for chicken comfort kept making it more costly to run a chicken house. What we today would call ESG policies.
A company makes a profit on what it sales, so, to increase profits, it decreases what it sales.
Must be a new truth from the woke MBA colleges.
In 1995, the phrase “Eat Mor Chikin” first appeared on a billboard in Atlanta, Ga. Painted by a pair of mischievous cows....
We will shortly be paying the same price for boneless chicken breasts as we pay for NY strip steaks, around fifteen dollars a pound.
That’s the reason. Scarcity of supply.
They MIGHT be moving the production further east. Like into eastern NC. I remember during the Great Recession there was a huge amount of construction of chicken houses in eastern NC. East of Raleigh around Goldsboro. I was told back then it would move the chickens closer to the Northeast US and potential EXPORT to Europe.
So, maybe they do not need the processing plants as much in the middle part of the country anymore.
Perot was right.
That fire in SC cost 25 lives back in the 80’s. Mostly blacks. Jesse Jackson kept reminding us as a POTUS candidate. Fire exits were chained up blocking escape. Why didn’t any employees call the fire department beforehand?
I wouldn’t read too much into this. Tyson owns 123 food processing plants, so this represents about 3% of that total.
Plants get old, equipment gets outdated, the value of the land rises, plants get moved and replaced. Competition grows.
There could be all kinds of reasons for them to do this, and none of them doomsday-worthy.
Bug burgers, oh boy.
True. I noticed Costco had whole chicken @ $15.00 each in a 2 pac last week.
If you’re selling less than your producing and sales are resisting your attempts to grow, then you reduce product. Even in the frozen chicken market excess product costs money.
TYSON heavily supported Bill Clinton when he ran for Governor & President.
I NEVER bought another Tyson product.
Oh no!! Where will all those Somali and African muslims find work?
Ain't that the truth!!
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