Tyson Food’s turnover might increase, throughout 2019, less than expected. In fact, the US meat giant is likely to reconsider its own expansion plans for the year currently underway. Looking over reasons for that, according to a few US media several concurrent factors are proving to be more challenging than expectations, which date to the past months.
Last Tuesday (September 3), the value of the US giant’s stocks reached 93.29 dollars. We are talking about their historical peak, driven by an expanding boost implemented, in the last months, in Asia and South America’s markets. Yet, during an internal call some problems allegedly arose for their Chicken Division (production has been slowing down). In addition, the group must urgently take appropriate action in their slaughtering plant, located in Holcomb, Kansas, partly damaged by a blaze flared up at the beginning of August.
It is no coincidence that on Tuesday evening Tyson issued a press release to remark that “short-term challenges” are affecting revenues in the fourth quarter. Therefore, share of profits should range between 3.20 and 5.70 dollars. Such forecast is going to revise remarkably the previous one, fixed between 5.75 and 6.10 dollars. However, according to financial analysts, challenges faced by Tyson are connected to current and temporary problems, which are bound to be solved. That is why the US giant expects things to improve considerably in 2020 financial year.