Tyson Foods reported strong third quarter results, positioning Tyson Foods for a record year. The company said in a press release that it expects high single digit earnings per share in 2018.In fiscal 2018, USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase approximately 3 to 4 percent from fiscal 2017 levels, but strong export markets should partially offset the increase, Tyson Foods said.
Tyson Foods acquired AdvancePierre on June 7, 2017, and expects to realize net synergies in excess of $200 million within three years with the majority of these benefits realized in our Prepared Foods segment. The company also said it expects to realize synergies of around $675 million in fiscal 2017 from the Hillshire Brands acquisition as well as its profit improvement plan for our legacy Prepared Foods business with some incremental synergies expected to be realized in fiscal 2018. The majority of these benefits will be realized in our Prepared Foods segment.
in addition, Tyson Foods announced on April 24, 2017, its intent to sell three non-protein businesses, Sara Lee® Frozen Bakery, Kettle and Van’s®, which are all a part of its Prepared Foods segment, as part of our strategic focus on protein-packed brands.
The projected revenue of these businesses total approximately $650 million for fiscal 2017 and had a net carrying value of $838 million at July 1, 2017. Tyson Foods anticipates they will close the transactions by the end of calendar 2017 and expect to record a net pretax gain as a result of the sale of these businesses.
To read Tyson Foods outlook for each of the company’s segments as well as the outlook on sales, capital expenditures, net interest expenditures, net interest expense, liquidity and share repuschases for the remainder of fiscal 2017 and fiscal 2018, click here.
