• By The Financial District

Tyson Foods Raises 2021 Revenue Forecast Due To High Beef Demand

Tyson Foods Inc. has raised its forecast for fiscal 2021 revenue and reported higher-than-expected quarterly earnings due to strong demand for its beef products from US restaurants and hotels resuming business, Reuters reported.

Photo Insert: The Tyson Foods trucks have become a company trademark.

Pent-up demand among consumers for a dine-in experience following the easing of COVID-19 restrictions has boosted sales for US meatpackers, which have also benefited from robust exports, Reuters reported.

Total sales in the quarter ended July 3 rose to $12.48 billion from $10.02 billion a year earlier. Analysts on average were expecting sales of $11.49 billion, according to IBES data from Refinitiv.

Net income attributable to Tyson increased to $749 million, or $2.05 per share, from $526 million, or $1.44 per share, a year earlier. On an adjusted basis, Tyson earned $2.70 per share, crushing estimates of $1.62.

"Our foodservice volume improved as the restaurant industry began to reopen and recover," said Donnie King, who in June became Tyson's fifth chief executive in five years.

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The Jimmy Dean hotdogs maker said it expects total sales of about $46 billion to $47 billion for fiscal 2021, compared with an earlier forecast range of $44 billion to $46 billion.

Analysts on average expect sales of $45.09 billion, according to IBES data from Refinitiv. Tyson has increased beef production to meet strong demand for higher-quality products, according to the company. Its pork business, however, is grappling with limited supplies of US pigs.

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In Tyson's chicken business, costs for feed jumped by $270 million in the quarter ended July 3. The unit posted a quarterly operating loss of $279 million, compared to a loss of $120 million a year earlier.

Tyson also accrued an additional $225 million to resolve legal claims alleging Tyson engaged in price-fixing in chicken, bringing its total recorded legal contingency accrual to $545 million in the matter.


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