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Tyson Foods Cuts Annual Profit Forecast Again as Beef Pressure Drains Margins
Tyson Foods lowered its annual profit and sales targets as beef margins tightened and cattle prices stayed volatile, sending shares down about 8%, the company said.
On Thursday, September 3, Tyson Foods cut its profit forecast for the second time in a month, citing beef segment pressures as shares dropped about 8% in early trading.
CEO Donnie King cited 'significant margin compression amid volatile cattle prices' as the primary driver, noting that lower cattle prices also reduced the value of live cattle inventories.
Projected beef operating losses now range from $625 million to $775 million, while adjusted operating income guidance fell to $1.85 billion to $2.05 billion and annual revenue growth was trimmed to 1.5% to 2.0%.
President Donald Trump signed a proclamation last week to increase lean beef imports at lower tariff rates, while Tyson plans to close or sell three beef facilities to consolidate operations.
Incoming CEO Jeff Schomburger and Chief Financial Officer Curt Calaway are scheduled to speak at the Barclays Global Consumer Conference in Boston on September 10 to outline fiscal strategy.