Tyson Foods Inc. of Springdale reported Monday losses for the fourth quarter and for fiscal 2023.
The publicly traded meat processor (NYSE: TSN) said it lost $450 million in the fourth quarter, a drop from a profit of $538 million in the same quarter a year ago. For the fiscal year, the company lost $648 million after making $3.2 billion in fiscal 2022.
Quarterly earnings per share was a loss of $1.31, down from $1.50. Earnings, adjusted for asset impairment costs and non-recurring costs, came to 37 cents per share, which surpassed Wall Street expectations of 33 cents per share.
For the fiscal year, EPS was a loss of $1.87, down from $8.92 a year ago.
Quarterly revenue was $13.35 billion, down from $13.7 billion. For the year, revenue was $52.9 billion, down from $53.3 billion.
“While economic headwinds persist, we are moving in the right direction and managing what we can control,” Tyson Foods CEO Donnie King said in a news release. “The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income. The strategy and leadership team we have in place will allow us to take advantage of the long-term opportunities in front of us and drive shareholder value.”
In its report, Tyson Foods said it expects its revenue to remain flat for fiscal 2024 compared to 2023.
The financial results come on the heels of another cost-cutting move by Tyson Foods, which said last week that it will close facilities in Jacksonville, Florida, and Columbia, South Carolina, in January. The closures will affect more than 450 employees.
In the past year, Tyson Foods has announced closures at six other facilities, including in Arkansas in North Little Rock and Van Buren. The company also laid off about 250 workers from a plant in Wilkesboro, North Carolina, and has said it will reduce its leadership positions by 15% and corporate positions by 10%.
Tyson Foods also eliminated hundreds of positions held by office workers who declined to move to its Springdale headquarters from South Dakota and the Chicago area as part of its OneTyson consolidation plan.
In its financial report on Monday, Tyson Foods said its beef segment reported quarterly sales of slightly more than $5 billion, up from $4.9 billion. For the year, sales were $19.3 billion, down from $19.9 billion.
Quarterly operating income was a loss of $323 million, down from a profit of $375 million, while fiscal operating income was a loss of $91 million, down from a positive $2.5 billion.
Tyson Foods said the U.S. Department of Agriculture predicts a 5% decrease in beef production in 2024. The company said it predicts its operating income to fall between a loss of $400 million and zero in 2024.
Tyson’s chicken segment reported quarterly sales of $4.2 billion, down from $4.6 billion. Fiscal revenue $17.1 billion, down from $16.96 billion.
Quarterly operating income in the chicken segment was a loss of $267 million, down from a positive $340 million. Fiscal quarterly income was a loss of $770 million, down from $955 million in 2022.
The pork segment reported quarterly sales of $1.5 billion, down from $1.6 billion. Fiscal year revenue was $5.8 billion, down from $6.4 billion.
Pork’s quarterly operating income was a loss of $11 million, an improvement from a loss of $55 million a year ago. Fiscal operating income was a loss of $139 million, a drop from $193 million in 2022.
The prepared foods segment reported quarterly sales of $2.5 billion, down from $2.52 billion. Fiscal revenue was $9.8 billion, up from $9.7 billion.
Prepared foods’ quarterly operating income of $118 million, up from $111 million. Fiscal operating income was $823 million, up from $746 million.
The international segment reported quarterly sales of $636 million, down from $638 million. Fiscal revenue was $2.5 billion, up from $2.4 billion.
International’s quarterly operating income was $20 million, up from a loss of $5 million. Fiscal operating income was a loss of $218 million, down from a positive $14 million.
