((Translation automated by Reuters, please consult the non-responsibility clause https://bit.ly/rtrsauto))))
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Tyson signals a drop in bovine meat sales volumes
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Chicken demand increases with the drop in prices
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Customs prices could cause temporary sales disruptions, according to the managing director
(Rewritten throughout, adds the drop in the price of action in paragraph 1, the comments of the Director General in paragraphs 4, 10, the analyst’s commentary in paragraph 13) by Tom Polansek and Neil J Kanatt
Tyson Foods TSN.N reported quarterly sales lower than forecasts and maintained its annual income forecasts Monday on a lower demand for beef, dropping the shares by 9% and overshadowing the better than expected profits.
The trade policies of the American president Donald Trump () weighed on the meat company because of the fears that tariff disputes () do not focus the prices of a series of consumer goods and do not reduce the demand for expensive meat products.
Beef prices have already climbed after American breeders reduced their herds of cattle due to a drought of several years that dried up the pastures used for pasture.
“Bovine meat knows the most difficult market conditions we have ever known,” analysts Director King told analysts at a call conference.
Tyson warned that customs duties could also cause sales disturbances, adding that exports represent less than 10 % of its activity. However, Mr. King said that the effects would be temporary, as commercial flows change, and that the company does not expect world consumption of meat.
Tyson beef demand decreased while average prices increased by 8.2 % in the second quarter which ended on March 29.
Some buyers are getting more and more for cheaper meats, such as chicken, because consumer morale has deteriorated.
The bovine meat sector, the largest Tyson unit, said an adjusted operating loss of $ 181 million for the six months that ended in March.
The company maintained its forecast of a total adjusted operating result from 1.9 to 2.3 billion dollars for the financial year 2025.
Some investors had hoped that Tyson revises his forecasts upwards due to the vigor of chickens, but Mr. King said that the company felt comfortable with its forecasts.
“We have lost $ 181 million, not to mention the customs tariffs, consumer pressure and the inflation we observe on the market,” he said.
Total quarterly quarterly sales of 13.07 billion dollars lacked the estimates of analysts who tabled on $ 13.14 billion, while the benefits of 92 cents per share exceeded the expectations of 82 cents, according to LSEG data.
In the Tyson chicken unit, quarterly sales volumes increased by 3 % while average prices fell by 1.1 %, which brought the profit to $ 312 million, compared to $ 160 million a year earlier.
“It is obvious that the results were very good in the first half, but the maintenance of forecasts implies a fairly significant drop in operating profit from one year to the next,” said Alexia Howard, analyst at Bernstein, at the conference.
Provisions for legal possibilities accentuated the pressure on sales, Tyson having declared that he had increased the provisions of $ 250 million for allegations according to which his pig activity was involved in pricing.
