Tyson Foods Inc. released its second quarter report showing a loss, particularly in the beef and pork segments, and revised its full-year revenue forecast downward.
Tyson reported a second fiscal quarter net income loss of $97 million compared to a net income of $829 million in the same quarter last year. Tyson’s beef segment had an operating income of $8 million, down from $638 million a year ago.
Beef sales totaled $4.6 billion in the quarter, down from $5.03 billion a year ago. Volume was down 2.9%, and prices fell 5.4%. The pork segment posted an operating loss of $31 million, down from gains of $59 million a year ago.
According to Reuters, JPMorgan analyst Ken Goldman said beef margins were Tyson’s worst since 2015, while pork margins were the worst in more than two decades at negative 2.2%.
“While the current protein market is challenging, we have a strong growth strategy in place and are bullish on our long-term outlook,” said Donnie King, president and CEO of Tyson Foods. “We saw strong performance in our branded foods business and continue to be laser-focused on meeting customer needs and planning the future with them.”
Sales of the prepared foods business were $634 million, up 12.2% year over year.
