Tyson Foods cuts sales and profit forecasts again
Tyson expects a deeper beef loss of up to US$775 million as cattle shortages and volatile prices drive margin pressure and prompt further operational changes.
USA – Tyson Foods has cut its sales and profit forecasts again, citing additional pressure in its beef segment as severe cattle shortages and volatile cattle prices weigh on margins.
The US meat group said its revised guidance reflects additional pressure in beef during the fourth quarter. Tyson said it is facing significant margin compression amid volatile cattle prices and one of the most severe cattle shortages in US history, along with the expected impact of lower cattle prices on live cattle inventories.
Tyson now expects revenue growth of 1.5% to 2%, down from the 2.5% to 3.5% increase forecast with its third-quarter results on 3 August.
The Hillshire Farm owner also lowered its adjusted operating income forecast to US$1.85 -US$2.05 billion, compared with its previous range of US$2.1B-US$2.3B.
Beef accounts for the largest downgrade. Tyson expects an adjusted operating loss of US$625M-US$775M in the segment, wider than the $500M-$650M loss projected in August.
President and CEO Donnie King said: “The beef pressures that have intensified this quarter reflect industry-wide cattle-cycle dynamics that required decisive action.”
The warning follows Tyson’s decision to consolidate its US beef network. The company is closing a beef plant in Joslin, Illinois, and a case-ready facility in Eagle Mountain, Utah, while selling a beef facility in Pasco, Washington.
Tyson announced on 13 August that it would anchor its beef operations around three sites in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas.
“We expect these actions to begin reducing operating cost pressures as we enter fiscal 2027,” King added.
The guidance reduction follows a US government move on 21 August to suspend out-of-quota tariffs for 90 days on up to 300,000 tonnes of imported product used for ground beef.
Outside beef, Tyson narrowed its adjusted operating income guidance for chicken to $1.85bn-$1.95bn and forecast pork at $200m-$250m.
Guidance for prepared foods and international operations was maintained. Tyson said its prepared foods business continues to perform well, while international operations are delivering as expected.
King said Tyson’s diversified, multi-protein portfolio” would help manage commodity cycles. He added that the company remains focused on “operational execution, brand investment, innovation and deeper strategic customer relationships.
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