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By Dhirendra Tripathi
Investing.com – Tyson Foods stock (NYSE:TSN) fell 0.7% in Monday’s premarket as the meatpacker reported lower volumes across its main offerings of chicken, pork and beef in the fourth quarter.
Another higher forecast did little to cheer investors who worry about prospects of higher meat prices hurting sales this winter.
Excluding chicken, sales volume in the other two meat categories were lower even after removing the effect of an additional week in 2020.
Beef sales volume fell more than 15% without removing the extra week last year. Pork volumes were lower around 18% while chicken sales volume fell 6%.
Sales prices of all meats increased owing to higher wages and increased freight and transportation costs. Raw material prices were higher too.
The company said it launching a new productivity program to save more than $1 billion in annual savings by the end of 2024.
Sales rose more than 10%, to $13 million, on higher prices, newer meat items on menus doing their bit to lure customers.
Net profit more than doubled to $1.35 billion as the company contained its selling expenses as well as its interest payments.
The maker of Jimmy Dean sausages now expects annual sales of $50 billion at the midpoint, more than its August estimate of $46.5 billion at the center of the range. It expects volume growth of 2% to 3%.