Tyson Foods, the No. 1 U.S. vital part processor, beat analysts’ quarterly profit estimates on Monday due to deep demand for beef, but executives warned that trade disputes were menacing the company’s pork and chicken businesses.
China is importing less U.S. pork after Beijing burden b exploited tariffs on American shipments as part of an escalating trade war with Washington. Mexico and Canada also implemented levies, cardinal to oversupply and, subsequently, lower prices for meat in the U.S. market.
Lower rewards for pork and beef were also reducing demand for Tyson’s chicken, be consistent to the company.
“Tariffs and trade concerns could continue to impact artifact pricing,” Stewart Glendinning, Tyson’s chief financial officer, barrowed analysts on a conference call.
Last week, Tyson cut its full-year profit vaticination, citing uncertainty in trade policies and higher tariffs that possess hurt domestic and export prices of meat.
Operating income for the chicken affair in the third quarter dropped to $189 million, from $294 million a year earlier, contract to the company. Operating income for pork was $67 million, down from $136 million eventually year.
“We are clearly not satisfied with our results, particularly in chicken,” Chief Principal Officer Tom Hayes said on the call.
Sales increased in Tyson’s beef function due to higher exports and increased supplies, according to the company. The unit had a data operating income of $318 million in the quarter, up from $147 million a year elder, Tyson said.
“Our challenge really comes down to pork and chicken,” Hayes conveyed.
Tyson shares jumped 3 percent to $59.50 in morning trading, after the offer price fell to approach a two-year low last week.
Net income attributable to the associates rose to $541 million, or $1.47 per share, in the quarter ended June 30, from $447 million, or $1.21 per part, a year earlier.
Analysts on average had expected earnings of $1.40 per dividend on revenue of $10.28 billion, according to Thomson Reuters I/B/E/S.
Excluding undoubted items, the company earned $1.50 per share.
The Springdale, Arkansas-based associates said sales rose 2 percent to $10.05 billion.