Tyson Foods sees FY19 sales of $42B, consensus $41.39B
Tyson said: "For fiscal 2019, we expect sales to grow to $42B due to volume growth, mix and approximately $150M from the impact of the Tecumseh Poultry, LLC and American Proteins, Inc. acquisitions net of divestitures noted above. The majority of the sales growth is expected to occur in our Chicken and Beef segments, as well as expected growth in our Prepared Foods segment after excluding the impact of the divestitures. We expect industry fed cattle supplies to increase approximately 2% in fiscal 2019 as compared to fiscal 2018. We expect ample supplies in regions where we operate our plants. For fiscal 2018, we expect our Beef segment's adjusted operating margin to be above 6% with similar results in fiscal 2019. We expect industry hog supplies to increase approximately 3% in fiscal 2019 as compared to fiscal 2018. For fiscal 2018, we expect our Pork segment's adjusted operating margin to be around 6% with similar results in fiscal 2019. AdvancePierre contributed $217M of incremental revenue in the first nine months of fiscal 2018, or incremental $318M in the first full year as part of our operation. We expect to capture Financial Fitness Program net savings of approximately $80M in fiscal 2018, which is a combination of AdvancePierre net synergies and reduction of non-value added costs. Based on current futures prices, we expect an increase of approximately $80M in feed ingredients in fiscal 2018 compared to fiscal 2017. USDA projects an increase in chicken production of approximately 2% in fiscal 2019 as compared to fiscal 2018. For fiscal 2018, we expect our Chicken segment's adjusted operating margins to be around 8%, with similar results for fiscal 2019...We expect capital expenditures to approximate $1.2B to $1.3B for fiscal 2018 and $1.6 billion for fiscal 2019."