SPRINGDALE, Ark., Feb. 08, 2018 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN), one of the world’s largest food companies and a recognized leader in protein with leading brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®, reported its first quarter reports.
First Quarter Highlights
- Record GAAP EPS of $4.40, up 177% from last year; Record Adjusted EPS of $1.81, up 14% from last year
- GAAP operating income of $927 million; Adjusted operating income of $950 million
- Total Company GAAP operating margin at 9.1%; Adjusted operating margin at 9.3%
- Record Prepared Foods GAAP operating margin of 11.4%; Record Adjusted operating margin at 11.9%
- Reduced debt over $500 million
- Realized $37 million of Financial Fitness Program cost savings
Tax Reform Impact
- Lower enacted tax rates positively impacted the first quarter Adjusted EPS by $0.21 and we expect a fiscal 2018 benefit of approximately $0.85 on an adjusted basis
- We expect the adjusted effective tax rate to be approximately 24% in fiscal 2018 and 25% in fiscal 2019
- Incremental tax reform cash flow in fiscal 2018 expected to exceed $300 million, which we intend to invest in our frontline team members and to sustainably grow our businesses
- More than $100 million in one-time cash bonuses to be paid to eligible frontline employees in the second quarter of fiscal 2018
- CEO message to employees on the Company's plans for the tax savings can be accessed at www.tysonfoods.com/who-we-are/the-feed
- Including the benefit of lower enacted tax rates but excluding the one-time cash bonuses, Adjusted1 EPS guidance for fiscal 2018 is $6.55-$6.70, which represents an approximate 23-26% increase from fiscal 2017 Adjusted EPS
“At Tyson Foods, we’re creating a modern food company focused on protein,” said Tom Hayes, Tyson Foods president and chief executive officer. “Building on our momentum from a record year in fiscal ’17, we’re off to a strong start in fiscal ’18. We delivered record adjusted EPS and our second-strongest quarter of operating income in Q1, with operating cash flows of more than $1.1 billion.
“The strength and diversity of our portfolio are evident. We drove solid results in each of our segments - beef, pork, chicken and prepared foods. We grew topline sales, with our retail and food service sales both outpacing the industry. We’re encouraged by the position we’re in today.
“As we look to the long-term, we’re confident in our ability to continue growing the business. Demand for protein continues to rise, and we’re well-positioned to take advantage of that opportunity - and to fulfill our aspiration of sustainably feeding the world.”