Tyson Foods Inc. of Springdale, citing strong performance in its beef segment, raised its fiscal year guidance on Thursday, but also said it would cut 450 jobs as it continues to integrate operations from AdvancePierre Foods, which it purchased earlier this year.
In a news release, the publicly traded meat processor said it would reduce headcount by 450 positions “across several areas and job levels.” It said most of the cuts will come from corporate offices in Springdale, Chicago and Cincinnati.
“We’re grateful to everyone who has contributed to the company’s success, and we’re thankful for their time with
Tyson acquired AdvancePierre Foods Holdings Inc. of Cincinnati for $4.2 billion in June. AdvancePierre, a national producer and distributor of value-added, ready-to-eat sandwiches, went public in 2016 when it reported annual revenue of $1.6 billion and approximately 4,500 employees.
Tyson said the synergies resulting from the AdvancePierre acquisition and other cost reductions will result in an expected savings of $200 million in 2018 and increasing by $200 million annually in 2019 and 2020. Tyson said the savings would be concentrated primarily in the Prepared Foods and Chicken segments.
Tyson said its guidance for adjusted earnings for fiscal year 2017, which ends Saturday, would increase to $5.20 to $5.30 per share. Previously, the guidance was $4.95 to $5.05.
Guidance for the coming fiscal year was $5.70 to $5.85, which would represent Tyson’s seven consecutive record year. Tyson will report its fourth quarter and annual earnings report Nov. 13.
In its fourth quarter earnings report, Tyson said it would report restructuring costs of approximately $140 million to $150 million. Approximately $70 million is for software implementations, $40 million to $50 million for employee terminations and $25 million to $30 million in contract terminations.
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