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Tyson Foods Q3 Profit Tops Estimates; Names Dean Banks CEO

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Tyson Foods, Inc. (TSN) reported third quarter adjusted net income per share attributable to company of $1.40 compared to $1.47, a year ago. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.94, for the quarter. Analysts' estimates typically exclude special items. Adjusted operating income declined year-on-year to $760 million from $796 million. The company noted that its results were negatively impacted by approximately $340 million of direct incremental expenses related to COVID-19.

Third quarter sales were $10.02 billion compared to $10.88 billion, previous year. Analysts expected revenue of $10.56 billion for the quarter. Sales volume for Beef, Pork & Chicken segments decreased in the third quarter primarily due to lower production throughput associated with the impact of COVID-19.

"Within each of our segments, we absorbed higher-than-normal operating costs related to COVID-19. Nonetheless, Tyson delivered strong results during the third quarter led by strength in our Beef and Pork segments. Despite short-term challenges, we're maintaining a clear focus on the long term. Our fourth quarter is off to a solid start, and while COVID-19 has been disruptive, we have a strong long-term outlook for Tyson Foods," said Noel White, Tyson Foods' CEO.

Tyson Foods noted that it is experiencing multiple challenges related to the pandemic. The company anticipates these challenges to increase its operating costs and negatively impact volumes for the remainder of fiscal 2020 and into fiscal 2021.

Separately, Tyson Foods announced that Dean Banks will succeed Noel White as Chief Executive Officer, while maintaining the role of President, effective October 3, 2020. White will remain with the company in a new role as Executive Vice Chairman of the board. Banks is currently president and a non-independent director. Prior to joining Tyson Foods, Banks was a Project Lead and on the Leadership Team at X, an Alphabet Inc. company, where he remains an advisor.

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