Tyson Foods Inc. is closing four chicken processing plants as it looks to lower costs.
The company said Monday that the plants being closed are located in North Little Rock, Arkansas; Corydon, Indiana; Dexter, Missouri and Noel, Missouri.
Tyson said that it will shift production to other facilities and halt operations at the four plants in the first two quarters of fiscal 2024. The company currently estimates having $300 million to $400 million in total charges, based on a preliminary analysis.
Tyson launched a plan in fiscal 2022 where it targeted $1 billion in productivity savings by the end of fiscal 2024. The company said that it realized more than $700 million of savings in fiscal 2022, which partially offset the impacts of inflationary market conditions. Tyson topped its $1 billion target in the second quarter of fiscal 2023, more than a year ahead of its plan.
In May Tyson posted a surprise loss in its second quarter and cut its sales forecast due to the cost of plant closures and layoffs.
Tyson has been trying to cut costs over the past several months. It closed its corporate offices in Chicago and South Dakota late last year and consolidated its workforce in Arkansas. In March it announced the closure of two plants in Arkansas and Virginia in order to better use available capacity at other facilities.
Tyson laid off 15 percent of its senior leadership and 10 percent of its corporate workers in April as it faces steep inflation on labor, grain and other inputs.
The company also reported its fiscal third-quarter financial results on Monday. Tyson posted a loss of $417 million, or $1.18 per share, for the period ended July 1. A year earlier it earned $750 million, or $2.07 per share.
The current quarter included a goodwill impairment charge of $448 million.
Removing asset impairment charges and restructuring costs, the Springdale, Arkansas-based company earned 15 cents per share. That’s well below the 34 cents per share analysts polled by Zacks Investment Research expected.
Revenue totaled $13.14 billion, down from $13.5 billion a year ago.
Tyson still anticipates fiscal 2023 revenue in a range of $53 billion to $54 billion. Analysts surveyed by FactSet expect revenue of $53.74 billion.
Shares dropped 8 percent before the market open.
All part of Bidenomics and the grand plan kiddies.
Maybe because Tyson has been sending USA chicken to be cleaned in China because it was cheaper. Tyson has alway been in with China and Bill Gates. This is part the master plan for New World Order.
Tyson has been raided I don’t know how many times for hiring illegals !
Sorry Tyson but I don’t buy anything with your name on it! I buy from friends who raise chickens and eggs , lamb,beef and pork organic and my family grows all our vegetables and our pantry is full.
So glad we left city and found fresh air!
Strange how no one ever talks about the China sanctions, etc. Just 4 years ago China began importing Chicken from Tyson – prior to that China refused to purchase so much as a chicken wing from the US. I have a feeling that something Biden did or is doing has decreased the vast amt of poultry that Tyson had exported overseas. The US was the #1 exporter of Tyson (specifically Tyson) chicken to China ~ so why all of a sudden a drastic drop in sales? For me, I’ll grab the $2.99 (was $1.89 until Biden stole the Election) boneless, skinless chicken breast from Walmart – whatever brand – in lieu of the $7/lb Tyson chicken. But it’s strange how this regime never discusses how much we export anymore – it’s as if no one is doing business w/Biden or there is something else nefarious going on…Trump used to always talk about how every Nation was committed to purchase X $ worth from us or else we wouldn’t import X$ worth from them – Fair Trade Deals. I’m thinking Spineless Biden Policy is causing this….and their astronomical price. I bought Tyson chicken nuggets (frozen) to feed my dogs once; when they refused – I never did that again. Their finicky-so if they won’t eat whatever it is – I don’t. But they never turn down the $2.99 chicken breasts